Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,980 |
| 1 Bedroom | $3,110 |
| 2 Bedrooms | $3,440 |
| 3 Bedrooms | $4,380 |
| 4 Bedrooms | $5,160 |
| 5 Bedrooms | $5,986 |
| 6 Bedrooms | $6,704 |
| 7 Bedrooms | $7,240 |
| 8 Bedrooms | $7,602 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,440 | $489,389 | 0.7% | D |
| 3BR | $4,380 | $565,488 | 0.77% | D |
| 4BR | $5,160 | $793,058 | 0.65% | D |
| 5BR | $5,986 | $870,806 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 20136 (Bristow, VA) reveals a stark contrast between the federally mandated Fair Market Rent (FMR) and the actual market conditions. Using the annualized 2BR FMR of $2710 for FY 2024, the gross yield can be calculated as follows:
To find the gross yield based on the FMR, divide the annual rent by the median home value. For ZIP 20136, this means an annual rent of $2710 divided by a median home value of $745,762, resulting in a gross yield of approximately 0.36%. This figure represents the potential income generated solely from the rental payments without factoring in expenses.
When considering the market rent, represented by the ZORI (Zillow Observed Rent Index) at $3,075 per month, the annual rent would be $36,900. Dividing this by the median home value yields a gross yield of about 4.95%. This higher gross yield reflects the potential earnings if the property were rented at market rates rather than the lower FMR.
Given the 7.2% renter density and the 4-day Days on Market (DOM), it is clear that the market rent scenario is more realistic. The low DOM indicates strong demand for rental properties in the area, suggesting that landlords could likely achieve the higher market rent rather than the lower FMR associated with Section 8.
While the FMR-based gross yield of 0.36% might seem unappealing, it is important to note that the FMR is designed to ensure affordability and is often below market rates. In contrast, the market rent-based gross yield of 4.95% aligns better with the local rental market dynamics and the observed high demand for rental units. This makes the 4.95% gross yield a more accurate representation of potential returns for landlords and small-portfolio investors in ZIP 20136.
Investors should use these figures to inform their decision-making process regarding whether to participate in the Section 8 program or aim for market rents. The choice depends on individual investment goals, risk tolerance, and the specific terms of any Section 8 contracts.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.