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 | $2,400 |
| 1 Bedroom | $2,500 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,530 |
| 4 Bedrooms | $4,160 |
| 5 Bedrooms | $4,826 |
| 6 Bedrooms | $5,405 |
| 7 Bedrooms | $5,837 |
| 8 Bedrooms | $6,129 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,530 | $389,396 | 0.91% | C |
| 4BR | $4,160 | $487,192 | 0.85% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 20616 reveals a unique balance between yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it occupies a middle ground with distinct advantages and risks.
On the yield axis, the Fair Market Rent (FMR) for ZIP 20616 in fiscal year 2024 is set at $2,280. This figure is lower than the market rent of $2,563, indicating that while there is room for rental price increases, the area is not characterized by exceptionally high rental yields. The median home value in this ZIP code is $426,214, which suggests that property investments here come with a higher initial capital requirement compared to areas with lower median home values.
Moving to the stability axis, the percentage of renters is relatively low at 4.7%, implying a primarily owner-occupied neighborhood. This could lead to less turnover and potentially more stable tenancies if the landlord chooses to rent out properties. However, the lack of specific data on days on market (DOM) indicates some uncertainty around how quickly properties can be rented once they become available. Lastly, the average household income in ZIP 20616 is $128,177, a strong indicator of financial stability among residents and their ability to meet rent obligations.
To summarize, ZIP 20616 offers a moderate rental yield opportunity with a slightly below-market FMR but has the potential for steady cash flow due to the high average income levels and a predominantly owner-occupied environment. The relatively low renter percentage suggests that rental demand might not be as robust as in purely rental markets, but the financial health of the residents supports a more stable investment climate. Landlords and small-portfolio investors should consider these factors when evaluating the potential returns and risks associated with investing in this ZIP code.
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.