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 | $2,300 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,660 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,390 | $450,427 | 0.75% | D |
| 4BR | $3,990 | $598,335 | 0.67% | D |
| 5BR | $4,628 | $664,334 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 20607 presents an interesting scenario for both renters and landlords. With a median income of $151,427, households in this area have a strong financial foundation. However, when it comes to affording the market rate rent of $1,172 per month, based on Census ACS data, it becomes apparent that the cost is relatively manageable for most residents.
Comparatively, the Fair Market Rent (FMR) standard for Section 8 vouchers in ZIP 20607 for fiscal year 2024 is set at $1860. This means that voucher holders would potentially be paying more than the current market rate, which could be a significant point of interest for landlords. The discrepancy between the market rate and the voucher payment highlights a substantial affordability gap, suggesting that landlords might face less competition for tenants who do not rely on vouchers.
Given that only 3.5% of the population are renters and the total population is 13,750, the number of potential rental units is limited. This limitation could increase competition among landlords for the available tenant pool, especially those who prefer cash-paying tenants over voucher recipients. However, the higher payment rates associated with vouchers could offset the increased competition and provide a stable source of income.
The takeaway for landlords considering their strategy in ZIP 20607 is clear: accepting Section 8 vouchers could be financially advantageous due to the higher payment standards compared to the local market rate. Landlords should weigh the benefits of steady, government-backed payments against the administrative complexity often associated with voucher programs.
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.