Section 8 Fair Market Rent (FMR) for ZIP 20176 - 2027

Investment Score for ZIP 20176

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	$2,170
1 Bedroom	$2,270
2 Bedrooms	$2,510
3 Bedrooms	$3,200
4 Bedrooms	$3,770
5 Bedrooms	$4,373
6 Bedrooms	$4,898
7 Bedrooms	$5,290
8 Bedrooms	$5,555

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	$2,270	$282,515	0.8%	C
2BR	$2,510	$424,359	0.59%	F
3BR	$3,200	$636,591	0.5%	F
4BR	$3,770	$963,749	0.39%	F
5BR	$4,373	$1,231,218	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20176 (Leesburg, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 20176 is set by HUD for 2026 and ranges from $1980 for a zero-bedroom unit to $3380 for a four-bedroom unit. For a two-bedroom unit, the FMR is $2280. This amount represents approximately 16.3% of the median household income in Leesburg, which is $168,299. The actual rent for a two-bedroom unit based on Zillow's median price is $430,638, which translates to a monthly rental cost that far exceeds the FMR. Given the price-to-FMR ratio of 15.7x, it is clear that the actual rents are significantly higher than the FMR. This creates a challenging environment for Section 8 voucher holders, who are constrained by the maximum allowable rent set by HUD. In Leesburg, the gap between FMR and actual rents is substantial, making it difficult for voucher holders to find units that landlords are willing to accept at the FMR rate. #### Affordability & Renter Profile Leesburg has a relatively small percentage of renters at 21.7%, indicating that the majority of residents are homeowners. The occupancy rate of 95.8% suggests a tight housing market where most available units are quickly occupied. With a median household income of $168,299, the typical resident in Leesburg can afford higher rents, but the limited supply of rental properties means competition is fierce. Given the high median income and the tight market conditions, the average renter in Leesburg is likely to be well above the poverty line and able to pay market rates. However, this also implies that there is a significant portion of the population who cannot afford the high rents, particularly those relying on Section 8 vouchers. #### Investor Angle For investors focusing on Section 8 properties, the dynamics in Leesburg present both challenges and opportunities. The FMR for a two-bedroom unit is $2280, which is only a fraction of the actual median rent of $430,638. This means that landlords would need to accept a much lower rent compared to the market rate if they want to participate in the Section 8 program. However, the high demand for rental units and the tight market could potentially lead to a steady stream of tenants. The challenge lies in finding units that are priced at or below the FMR. Given the high median income and the limited number of renters, the pool of potential Section 8 tenants is smaller, and landlords might struggle to fill their units with eligible tenants. From an investment standpoint, the ZIP code is not cash-flow positive at the FMR level due to the significant difference between the FMR and the actual market rents. The investment grade in this area would be considered low for Section 8-focused investors because of the difficulty in attracting tenants and the lower returns compared to market-rate rentals. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring units that are already priced below the FMR. This includes smaller units like studios and one-bedroom apartments, which have FMRs of $1980 and $2050 respectively. These units are more likely to attract Section 8 tenants and provide a better chance of filling vacancies. 2. **Consider Renovation Projects**: There may be older properties or units that can be renovated and brought into compliance with Section 8 standards at a lower cost. By investing in these properties, landlords can potentially offer them at a price closer to the FMR, making them more attractive to voucher holders. 3. **Engage with Local Agencies**: Building relationships with local housing authorities and tenant placement agencies can help landlords navigate the complexities of the Section 8 program. These agencies can provide valuable insights into the availability of vouchers and the process of securing tenants. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 20176 is to **Skip**. The high disparity between FMR and actual market rents, combined with the limited number of renters and the tight market, makes it difficult to achieve positive cash flow and a viable investment return. The challenge of finding units that are affordable under the FMR and the potential difficulties in securing eligible tenants outweigh the benefits in this particular ZIP code.

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.