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 Section 8 cap-rate analysis for ZIP code 20510 provides insight into potential investment opportunities in the area. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1980 per month. However, the median home value and market rent figures are currently unavailable, which complicates a direct comparison between the FMR and market rents.
Despite these missing data points, we can still derive a rough picture of the gross yield for Section 8 properties. Assuming an annualized FMR of $23,760 for a two-bedroom unit, the gross yield can be calculated based on the property's value. For instance, if a typical home in ZIP 20510 is valued at $350,000, the gross yield would be approximately 6.8%. This figure is derived by dividing the annualized FMR by the property value ($23,760 / $350,000 = 0.068).
Without the median home value, it's challenging to provide a precise gross yield for market rents. However, it's important to note that the gross yield derived from Section 8 payments is a guaranteed income stream, unlike market rents, which can fluctuate based on local economic conditions and tenant demand. Given the N/A% renter density and the N/A-day Days on Market (DOM), it's evident that there is limited data to support a robust comparison between Section 8 and market yields.
In conclusion, while the exact market rent and median home value are unknown, the Section 8 program offers a stable and predictable gross yield of about 6.8% based on the annualized FMR. This makes it a reliable option for investors seeking consistent returns. However, the lack of comprehensive data means that further research is necessary to determine the most realistic scenario for ZIP 20510.
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.