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 | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $565,143 | 0.31% | F |
| 3BR | $2,260 | $646,809 | 0.35% | F |
| 4BR | $2,660 | $869,683 | 0.31% | F |
| 5BR | $3,086 | $1,138,570 | 0.27% | F |
U.S. Census Bureau data (2024)
A decision tree for considering whether to purchase properties in ZIP code 20181 (Nokesville, VA) for Section 8 investment follows these steps:
Step 1: Does the Fair Market Rent (FMR) of $1,600 cover the debt service on a property valued at $813,818?
If you calculate the monthly mortgage payment based on typical financing terms, a $813,818 property would likely require a monthly debt service that exceeds the FMR of $1,600. For instance, with a 30-year fixed-rate mortgage at 4%, the monthly payment would be approximately $3,800. Therefore, the answer to this question is No. The FMR does not clear the debt service, making it financially unfeasible to rely solely on Section 8 tenants for this property value.
Step 2: Is the market rent of $1,487 (from Census ACS data) above, at, or below the FMR?
The market rent of $1,487 is below the FMR of $1,600. This means that landlords can potentially charge higher rents to non-Section 8 tenants, which could offset the financial limitations identified in Step 1. However, this also indicates that the local rental market might be less robust compared to what the government deems as fair market value for subsidized housing.
Step 3: Are 7.1% of residents renters and the number of days on the market (DOM) sufficient to meet demand?
The percentage of renters at 7.1% suggests a relatively low demand for rental properties in Nokesville. Additionally, the lack of data on the average days on the market (DOM) makes it difficult to assess how quickly properties are rented out. Given the low percentage of renters and the absence of DOM data, the answer is It Depends. Landlords need to consider other factors such as vacancy rates, the local economy, and the availability of Section 8 vouchers.
Summary: For ZIP code 20181, the decision to invest in Section 8 properties hinges on the ability to finance properties at lower values where the FMR can cover the debt service. The market rent being below the FMR offers some flexibility but does not change the fundamental issue of affordability. With only 7.1% of residents as renters and insufficient data on DOM, landlords must carefully weigh the risks and opportunities before making an investment decision.
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.