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 20515, located in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for this ZIP code in fiscal year 2024 is set at $1980. While specific market data for ZIP 20515 was not available, the broader Washington, DC metro area has a median home value of $733,477. This suggests that properties in ZIP 20515 likely command high market values due to their proximity to the U.S. House of Representatives and other federal institutions.
The high FMR compared to typical rental rates in such a high-value area means that landlords can secure stable, government-backed rental income. This is particularly advantageous because it guarantees a steady stream of cash flow, regardless of market fluctuations. The residents of this ZIP code are often government employees or contractors who benefit from consistent employment and income, making them reliable tenants under the Section 8 program.
ZIP 20515 is not suitable as an appreciation play or a diversifier within a Section 8 portfolio. There is no specific data indicating a high percentage of price cuts or days on market (DOM), which would be necessary for identifying it as an appreciation opportunity. Similarly, there is no mention of a high renter share or median income that would make it a prime candidate for diversification. Instead, the focus should be on leveraging the guaranteed rental income to stabilize a portfolio's cash flow.
In summary, ZIP 20515 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. Its high FMR ensures a solid rental income, while the strong economic foundation of the area supports the reliability of tenants.
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.