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 | $2,330 |
| 1 Bedroom | $2,440 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,050 |
| 5 Bedrooms | $4,698 |
| 6 Bedrooms | $5,262 |
| 7 Bedrooms | $5,683 |
| 8 Bedrooms | $5,967 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $418,960 | 0.82% | C |
| 4BR | $4,050 | $535,339 | 0.76% | D |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 20623 include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. The Fair Market Rent (FMR) for FY 2024 in this area is set at $2240, which is the maximum rental amount accepted under the program. However, the lack of data on market rent suggests that actual market rates could be higher, leading to a discrepancy between what tenants can afford and what landlords might expect to charge. This disparity can result in higher tenant turnover, as tenants struggle to find suitable housing within their budget.
Vacancy exposure is another concern, given the absence of data on the days on market (DOM). In real estate, a longer DOM indicates difficulty in renting out properties, which can be particularly problematic for Section 8 landlords who rely on consistent rental income. A property left vacant due to extended marketing periods can lead to financial losses and increased management costs.
Deferred maintenance poses a risk as well. With a typical home value of $514,808 and a median income of $146,058, residents in ZIP 20623 may have limited disposable income to cover the cost of maintaining a rental property. Landlords must be prepared to handle maintenance issues promptly to avoid safety hazards and ensure compliance with housing standards. Failure to address these issues can result in penalties and damage to the property's long-term value.
Despite these risks, the high concentration of renters in the area, representing 6.8% of the population, generally translates into strong demand for rental properties, including those accepting Section 8 vouchers. This high renter density can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as there is likely a steady pool of qualified applicants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.