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 | $2,240 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,890 |
| 5 Bedrooms | $4,512 |
| 6 Bedrooms | $5,053 |
| 7 Bedrooms | $5,457 |
| 8 Bedrooms | $5,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,590 | $299,628 | 0.86% | C |
| 3BR | $3,300 | $396,167 | 0.83% | C |
| 4BR | $3,890 | $474,252 | 0.82% | C |
| 5BR | $4,512 | $564,124 | 0.8% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 20601 (Waldorf, MD) presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $438,970, indicating a relatively stable housing market. With only 0.2% of listings being reduced, it suggests that sellers are holding firm on their asking prices, which is a positive sign for pricing power. This resilience in pricing, coupled with a median Days on Market (DOM) of just 26 days, points to a brisk sales environment where homes are moving quickly, further reinforcing the strength of current pricing.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 20601 in fiscal year 2024 is projected at $2,080, while the current market rent (ZORI) sits at $2,169. This slight premium in market rent over the FMR signals a minor advantage for landlords, who can potentially maintain slightly higher rents than the government's estimated fair market rate. However, the narrow gap between FMR and ZORI suggests limited room for significant rent increases without risking tenant loss to more affordable options.
For long-term investors considering the appreciation potential in Waldorf, MD, the data implies a cautious approach. While the current market conditions support maintaining current property values and modest rent levels, there is little indication of substantial price appreciation over the next 12-24 months. The stable home values and quick turnover rates suggest a balanced market where neither significant gains nor losses are likely. Long-term investors should focus on steady cash flows and the stability of the local economy rather than rapid capital appreciation.
In summary, the combination of a high median home value, minimal listing reductions, and short DOM indicates a strong seller’s market. Landlords can leverage this by maintaining current rents, but they must be prepared to compete with the FMR for tenants. Small-portfolio investors looking to hold properties for the long term should anticipate moderate returns driven by consistent rental income rather than dramatic increases in property value.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.