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 |
To integrate ZIP 20500 into a Section 8 portfolio strategy, one must consider its characteristics relative to the broader Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. As of the fiscal year 2024, the Fair Market Rent (FMR) for ZIP 20500 stands at $1980. This figure serves as a benchmark for rental rates within the ZIP code, which is essential for landlords participating in the Section 8 program.
The lack of specific market data such as median home values and price-cut shares indicates that ZIP 20500 may not be a primary target for appreciation plays. Without historical trends and current market dynamics, it's challenging to predict significant price increases or rapid turnover times. Therefore, it's best classified as a cash-flow anchor within a Section 8 portfolio.
The spread between the FMR and the general market conditions can be leveraged to ensure steady cash flow. Since the FMR is set at $1980, landlords can expect consistent rental income without the volatility often associated with fluctuating market prices. This stability is crucial for long-term financial planning and maintaining a predictable revenue stream, especially when dealing with government-subsidized programs.
ZIP 20500's alignment with the Section 8 program ensures a reliable tenant base, reducing the risk of vacancies and delinquencies. The program's structure provides subsidies directly to tenants, which then pay a portion of their income towards rent, making it easier for landlords to manage properties and maintain occupancy levels.
While specific metrics like the percentage of renters and median income are not provided, the ZIP code's inclusion in the HUD Metro FMR Area suggests a diverse demographic profile typical of urban areas. This diversity can serve as a natural hedge against economic downturns, as different segments of the population may be affected differently by changes in the economy.
In summary, ZIP 20500 should be viewed as a cash-flow anchor in a Section 8 portfolio strategy. With an FMR of $1980, landlords can rely on stable rental income, backed by the government subsidy program, ensuring a predictable and steady financial performance. This approach aligns well with the goals of landlords and small-portfolio investors seeking consistent returns rather than speculative gains.
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.