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 | $2,870 |
| 1 Bedroom | $2,990 |
| 2 Bedrooms | $3,310 |
| 3 Bedrooms | $4,220 |
| 4 Bedrooms | $4,970 |
| 5 Bedrooms | $5,765 |
| 6 Bedrooms | $6,457 |
| 7 Bedrooms | $6,974 |
| 8 Bedrooms | $7,323 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,220 | $522,644 | 0.81% | C |
| 4BR | $4,970 | $631,466 | 0.79% | D |
| 5BR | $5,765 | $725,077 | 0.8% | D |
U.S. Census Bureau data (2024)
3040 is the Fair Market Rent (FMR) for ZIP code 20637 as of fiscal year 2024, indicating the maximum amount a Section 8 tenant can pay for rent. 2366 represents the average market rent in the same area according to Census ACS data, suggesting that properties priced at or below the FMR could be attractive to both Section 8 tenants and traditional renters. 586,548 is the median home value in this ZIP code, which is significantly higher than the average market rent, reflecting the potential for investment in rental properties over homeownership. 5.4% is the portion of the population that are renters, highlighting a smaller but still viable rental market. 160,121 is the median income figure, which is crucial for understanding the financial capacity of potential residents, including those who might qualify for Section 8 assistance. N/A indicates that there's no available data on the days on market (DOM), which could suggest a robust demand for rental properties in this area. 0.3% is the price-cut share, revealing that very few listings require a reduction in price, which points to a stable rental market.
Investors looking to enter the rental market in ZIP code 20637 should consider the following: properties priced at or near the $3040 FMR will be competitive for Section 8 tenants while also appealing to the broader rental market at $2,366. The high median home value of $586,548 suggests that rental properties could offer a more accessible entry point for many individuals. With only 5.4% of the population renting, opportunities may be limited compared to areas with higher rental shares, but the strong demand indicated by the low price-cut share of 0.3% makes it worthwhile. Additionally, the median income of $160,121 provides insight into the economic profile of the area, supporting the notion that there is a sufficient pool of potential tenants who could meet the income requirements for Section 8 eligibility.
A final consideration is the lack of data on days on market, which typically would help gauge how quickly properties are rented out. However, given the low rate of price cuts and the overall stability suggested by the other metrics, it's reasonable to infer that the rental market in ZIP 20637 is healthy and responsive.
Section 8 verdict: ZIP 20637 presents a favorable environment for Section 8 investments, particularly for properties priced at or below $3040.
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.