Section 8 Fair Market Rent (FMR) for ZIP 20164 - 2027

Investment Score for ZIP 20164

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,300
1 Bedroom	$2,400
2 Bedrooms	$2,650
3 Bedrooms	$3,380
4 Bedrooms	$3,980
5 Bedrooms	$4,617
6 Bedrooms	$5,171
7 Bedrooms	$5,585
8 Bedrooms	$5,864

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,400	$255,654	0.94%	C
2BR	$2,650	$380,082	0.7%	D
3BR	$3,380	$550,020	0.61%	D
4BR	$3,980	$664,564	0.6%	F
5BR	$4,617	$705,988	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20164 (Sterling, VA) #### Section 8 Voucher Dynamics In ZIP code 20164, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,430. This amount represents 21.5% of the median household income of $135,660, which suggests that the rent is relatively affordable compared to local incomes. However, the actual market rent for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $379,360. The price-to-FMR ratio of 13.0x indicates that the market rent is nearly 13 times the FMR, making it challenging for Section 8 voucher holders to find housing that fits within their budget. The FMRs for other bedroom sizes are as follows: - 0BR: $2,110 - 1BR: $2,180 - 3BR: $3,070 - 4BR: $3,600 Given these figures, landlords who accept Section 8 vouchers must be willing to rent below market rates, which can be a significant deterrent in such a high-cost area. Additionally, the occupancy rate of 97.2% suggests that there is little vacancy, further complicating the search for affordable housing. #### Affordability & Renter Profile ZIP code 20164 has a population of 43,436, with 24.9% being renters. The median household income of $135,660 is quite high, indicating that most residents are likely employed in high-paying jobs, possibly in tech or government sectors. The tight rental market, with a low vacancy rate, means that competition for rental units is fierce. Given the high median income, the typical renter profile would include individuals or families who have disposable income but may still struggle with the high cost of living in the area. For those relying on Section 8 vouchers, the challenge is compounded by the fact that the FMR is far below the actual market rent. This makes it difficult for voucher holders to secure housing, especially when landlords might prefer market-rate tenants due to the higher revenue potential. The high price-to-FMR ratio of 13.0x underscores the affordability gap in the Sterling market. #### Investor Angle From an investor perspective, the ZIP code 20164 presents a mixed picture. While the occupancy rate is high, suggesting strong demand, the FMRs are well below the market rents. For instance, the FMR for a two-bedroom unit is $2,430, while the market rent is $379,360. This means that landlords accepting Section 8 vouchers would need to rely on the subsidy to make up the difference between the FMR and the market rent. However, the high price-to-FMR ratio implies that the cash flow from renting at FMR levels would be negative unless the landlord can leverage additional subsidies or benefits. The investment grade in this market would be considered low for properties rented solely at FMR levels, given the disparity between FMR and market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units like studios or one-bedroom apartments might be more viable for Section 8 voucher holders. The FMR for a 0BR unit is $2,110, and for a 1BR unit, it is $2,180. These lower FMRs could allow for better cash flow if the market rent for these units is proportionally lower than for larger units. 2. **Seek Additional Subsidies**: Investors should explore opportunities to combine Section 8 vouchers with other local or federal housing assistance programs to improve the financial viability of their investments. This could include programs like Low-Income Housing Tax Credits (LIHTC) or other state-level subsidies. 3. **Consider Long-Term Rental Strategies**: Given the high demand and limited supply, long-term rental strategies that focus on maintaining stable tenancy could be beneficial. Landlords could offer incentives such as maintenance-free units or flexible lease terms to attract and retain Section 8 voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 20164 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when renting exclusively at FMR levels. While there is a significant demand for rental units, the financial constraints imposed by the FMR system in this high-cost area suggest that investing in this ZIP code would not be financially advantageous for those relying solely on Section 8 vouchers.

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.