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 | $2,380 |
| 1 Bedroom | $2,490 |
| 2 Bedrooms | $2,750 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,130 |
| 5 Bedrooms | $4,791 |
| 6 Bedrooms | $5,366 |
| 7 Bedrooms | $5,795 |
| 8 Bedrooms | $6,085 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,750 | $405,045 | 0.68% | D |
| 3BR | $3,500 | $590,349 | 0.59% | F |
| 4BR | $4,130 | $701,286 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 20166 in Sterling, VA, is characterized by a significant rental population, with 50.5% of residents being renters. This indicates a robust demand for rental properties, particularly those that cater to Section 8 tenants. Given the median household income of $133,401, it's important to analyze how this compares to the typical market rent of $2,396.
In Sterling, the typical rent eats up approximately 1.8% of the median household income. This calculation is derived from dividing the average monthly rent by the annual median income and multiplying by 100. The Fair Market Rent (FMR) for the area, set at $2,260 for FY 2024, is slightly below the market rent but still within a reasonable range, suggesting that there is a healthy balance between what the market demands and what is considered fair by HUD standards.
A landlord in this ZIP can expect a diverse tenant pool. While the median income suggests a higher economic status among residents, the significant percentage of renters indicates that many individuals and families rely on the rental market. For those using Section 8 vouchers, the typical rent represents a substantial portion of their budget, likely around 30-40% of their income, which aligns with federal guidelines. Landlords should prepare to work with tenants who may have limited financial flexibility and require assistance with rent payments.
To conclude, ZIP 20166 is a renter-heavy area with a strong potential for Section 8 voucher utilization. Despite the high median income, the rental market remains vibrant, making it an attractive location for landlords willing to participate in the housing choice voucher program. Tenants will be primarily seeking affordable housing options within the parameters of their vouchers, and landlords should be prepared to offer competitive rates and amenities to attract these tenants.
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.