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 | $2,170 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,510 | $356,604 | 0.7% | D |
| 3BR | $3,200 | $384,234 | 0.83% | C |
| 4BR | $3,770 | $521,149 | 0.72% | D |
| 5BR | $4,373 | $607,938 | 0.72% | D |
U.S. Census Bureau data (2024)
The ZIP code 20603, located in Waldorf, MD, presents a dynamic housing market with distinct characteristics that suggest a balance between supply and demand. The Fair Market Rent (FMR) for the area stands at $2080 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a slightly higher market rent of $2,560. This discrepancy suggests that the actual rental market is slightly more robust, with rents exceeding the government's fair market assessment.
The low price-cut share of 0.2% and a relatively short days on market (DOM) of 27 days imply that homes are selling close to their asking price and quickly. This points to a market where demand is strong enough to support near-asking-price sales without significant discounts. The median home value of $483,804 further underscores the stability of the housing market, reflecting a steady state where neither rapid appreciation nor depreciation is occurring.
A 16.4% renter share in the ZIP code indicates a substantial portion of the population renting rather than owning. This high percentage of renters can be indicative of long-term housing pressure, suggesting that a significant number of residents find it challenging to enter the homeownership market. As a result, the rental market remains vibrant, with a constant flow of new renters and a steady demand for rental properties.
In summary, ZIP 20603 is a market where demand meets supply effectively, with rents slightly above the FMR and homes selling swiftly. The high renter share highlights ongoing pressure on the housing market, making it an attractive location for landlords and small-portfolio investors looking to capitalize on steady rental income and property values.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.