Section 8 Fair Market Rent (FMR) for ZIP 20170 - 2027

Investment Score for ZIP 20170

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	$2,360
1 Bedroom	$2,460
2 Bedrooms	$2,720
3 Bedrooms	$3,470
4 Bedrooms	$4,080
5 Bedrooms	$4,733
6 Bedrooms	$5,301
7 Bedrooms	$5,725
8 Bedrooms	$6,011

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	$2,460	$273,947	0.9%	C
2BR	$2,720	$348,721	0.78%	D
3BR	$3,470	$561,581	0.62%	D
4BR	$4,080	$795,938	0.51%	F
5BR	$4,733	$921,103	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20170 (Herndon, VA) #### Section 8 Voucher Dynamics In ZIP code 20170, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,460 per month. This figure represents 18.5% of the median household income of $159,466, indicating that it is within the affordability range for low-income households. However, the actual rent for a two-bedroom unit in Herndon is significantly higher, with the Zillow median price standing at $352,464, which translates to a monthly rent of approximately $2,937 based on typical mortgage calculations. The price-to-FMR ratio of 11.9x suggests that actual rents are nearly 12 times the FMR, creating a substantial gap between what voucher holders can afford and the market rates. This dynamic poses significant constraints for voucher holders. For instance, a tenant with a Section 8 voucher would only be able to cover up to $2,460 of the $2,937 monthly rent, leaving them to pay the remaining $477 out-of-pocket. Given the high cost of living in Herndon, this additional burden could be challenging for low-income individuals, potentially limiting their housing options to properties that accept vouchers and charge closer to the FMR. #### Affordability & Renter Profile The population of Herndon is 43,866, with 31.7% being renters. This indicates a moderately sized rental market, but the high median household income suggests that many residents are likely employed in high-paying jobs, such as those in the tech industry or federal government. The occupancy rate of 96.6% implies a tight rental market where most units are occupied, leaving little room for vacancy. Given the high median household income and the fact that actual rents are well above the FMR, it is clear that the majority of renters in Herndon are not low-income individuals. Instead, they are likely middle- to upper-class professionals who can afford the higher rent prices. This tight market means that there is strong demand for rental properties, but the supply is limited, leading to competition among potential tenants and higher rents. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR. Given that the actual rents are significantly higher than the FMR, it is unlikely that an investor would find cash-flow positive properties if they were to strictly adhere to the FMR guidelines. For example, a two-bedroom property renting at $2,460 per month would need to have very low operating costs to generate a profit, especially considering the high property values and maintenance expenses in Herndon. However, some investors might consider properties that accept Section 8 vouchers as part of a broader strategy to diversify their portfolio. While these properties may not offer the highest returns, they can provide stable long-term income due to the government backing of the vouchers. The investment grade for these properties would be moderate, given the relatively high risk associated with lower rents compared to market rates, but also the stability provided by the voucher program. #### Specific Actionable Insights 1. **Target Properties Below Market Rates**: Investors should focus on acquiring properties that are priced below the market rate but still within the acceptable range for Section 8 vouchers. For instance, a two-bedroom apartment renting at $2,500 per month would be slightly above the FMR but still within reach for voucher holders, offering a balance between profitability and accessibility. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units, multi-family buildings with three or four-bedroom apartments could be more attractive for Section 8 voucher holders. A four-bedroom unit renting at $3,650 per month would be more affordable for families with multiple children, and could potentially attract more tenants looking for larger spaces. 3. **Evaluate Property Management Costs**: Due to the high property values in Herndon, it is crucial to evaluate the management and maintenance costs of properties. Investors should ensure that these costs do not exceed the FMR-based rental income. For example, a property with a $2,460 monthly rent must have operating costs that allow for a reasonable profit margin. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 20170 is to **Skip**. The significant gap between FMR and actual market rents makes it difficult to achieve positive cash flow while adhering to voucher guidelines. Additionally, the tight rental market and high median household income suggest that the majority of tenants are not voucher recipients, further reducing the attractiveness of this ZIP code for such investments. Instead, investors should look for areas with a closer alignment between FMR and market rents, or where the rental market is less competitive.

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.