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 | $1,970 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,990 | $364,010 | 0.82% | C |
U.S. Census Bureau data (2024)
The ZIP code 20625, located in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, presents an interesting opportunity for Section 8 real-estate investors. The HUD Fair Market Rent (FMR) for the area is set at $1970 for the fiscal year 2024. This figure represents the maximum amount that landlords can charge voucher holders for their rental properties.
Despite the availability of HUD FMR data, the market rent for ZIP 20625 is currently not available. However, the median home value in the area is $366,660, which provides a basis for calculating the rent-to-price ratio. Assuming a typical mortgage payment (including principal, interest, taxes, and insurance) aligns closely with the market rent, the calculated rent-to-price ratio would indicate the financial viability of renting versus buying in this area.
Given the HUD FMR of $1970, it's likely that voucher tenants will only cashflow in premium units. This is because the FMR does not typically cover the full cost of renting standard market-rate units. Landlords should focus on properties that have higher efficiencies in terms of space and utility costs to ensure positive cash flow when renting to voucher tenants.
In the absence of specific market rent data and median days on market (DOM), it's important to note that the lack of precise rental metrics can make it challenging to fully assess the local rental market dynamics. However, the strong demand for affordable housing in this region suggests that the stability of income from Section 8 vouchers could be a significant advantage over variable market rents.
The strongest investor angle in ZIP 20625 is likely cashflow, given the high median home values and the potential for premium units to generate sufficient income even at the HUD FMR rate. This makes the area particularly attractive for investors seeking consistent, government-backed rental income.
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.