Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,080 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
The ZIP code 20374, located in Washington, DC, within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, serves as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for the area, which is set at $1,980 for FY 2024, and the median home value of $150,268. The high FMR relative to the median home value ensures that landlords can secure steady rental income, often exceeding the cost of mortgage payments, utilities, and maintenance.
Moreover, the median household income of $35,374 suggests a working-class area where many residents rely on government assistance programs such as Section 8. This makes it an ideal location for landlords who want to ensure consistent occupancy and predictable cash flows. The low unemployment rate of 8.1% further supports the stability of rental income in this area.
The affordability of housing in ZIP 20374, with home values being 100.2% above the state average, also indicates a competitive real estate market. However, the lower cost of living index of 59, compared to the national average of 100, means that the purchasing power of residents is relatively strong despite their income levels. This factor contributes to the viability of the area as a cash-flow anchor, as it attracts tenants who can afford the rents supported by the FMR.
In conclusion, ZIP 20374 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to its high FMR, stable rental income potential, and competitive yet affordable housing market.
Data Sources: FMR data from HUD (2027).
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.