Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,300 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 20608 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1940, while the Census American Community Survey (ACS) reports the market rent at $1,289. This creates a gap of $651 per month, or approximately 51%, where landlords can receive higher rents through Section 8 vouchers compared to the open market.
The higher FMR allows voucher tenants to pay significantly more than what the market dictates. This makes the area a strong yield play for landlords and small-portfolio investors. Despite the 27.3% of residents being renters and the median home value sitting at $403,021, the median household income of $82,083 suggests that many individuals may struggle to afford market rents without assistance.
However, accepting Section 8 tenants also comes with its own set of costs and considerations. Landlords must ensure their properties meet HUD standards, which can require additional investment in repairs and maintenance. Moreover, the administrative burden and potential delays in receiving payments can impact cash flow management. In ZIP 20608, the opportunity to charge $651 more per month than the market rate can offset these costs and still provide a compelling financial return.
To summarize, the gap between FMR and market rent in 20608 is substantial, making it a prime location for landlords who can leverage Section 8 vouchers to increase their rental yields. The high FMR compensates for the lower market rents and the specific challenges associated with housing voucher tenants.
Data Sources: FMR data from HUD (2027). 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.