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 | $2,440 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,550 | $302,059 | 0.84% | C |
| 2BR | $2,820 | $474,902 | 0.59% | F |
| 3BR | $3,590 | $647,556 | 0.55% | F |
| 4BR | $4,230 | $953,668 | 0.44% | F |
| 5BR | $4,907 | $1,130,728 | 0.43% | F |
U.S. Census Bureau data (2024)
Ashburn, specifically the 20147 ZIP code, is characterized as a high-income, master-planned suburban hub within Loudoun County. This area is known for its strong family orientation and proximity to the Dulles Technology Corridor. A major anchor for the local economy is Verizon Business, which operates a significant campus here, contributing to a robust base of professional residents. The neighborhood features extensive mixed-use developments like One Loudoun, offering residents walkable retail and dining options, which bolsters the area's desirability for renters seeking convenience alongside suburban living.
From a numerical standpoint, the HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2024 is $2170, rising to $2520 by FY2026. However, the current market rent (Zillow ZORI) sits at $2643, creating a notable gap of $473 between what a voucher pays and the going market rate. Real estate values are high, with a median home value of $757,795 and a median 2BR sale price of $480,399. Properties move quickly here, with a median of just 30 days on market, indicating a competitive environment where voucher tenants may struggle to secure units without covering the difference out-of-pocket.
With a renter share of 32.1% and a median household income of $163,904, the tenant pool is generally affluent, which complicates pure voucher reliance. The area is served by highly-rated schools within the Loudoun County Public School system and offers ample transit links via the nearby Silver Line Metro, attracting families and professionals. While the high median income suggests a population that can easily afford market rates, the limited inventory and 30-day turnover period mean landlords can afford to be selective, often prioritizing market-rate tenants over vouchers unless the landlord offers a rent concession.
The Section 8 verdict for Ashburn 20147 leans heavily toward appreciation and stability rather than immediate cash flow. The substantial disparity between the $2170 HUD payment and the $2643 market rent, combined with the $757,795 median home value, suggests that cash-flowing strictly on the voucher amount is difficult without significant equity down. Investors should target this market for long-term capital appreciation and the security of a high-income demographic, accepting that voucher holders here likely need supplemental income to bridge the $473 monthly rent gap.
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.