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 | $1,900 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $141,360 | 1.55% | A+ |
| 3BR | $2,790 | $339,932 | 0.82% | C |
| 4BR | $3,290 | $456,604 | 0.72% | D |
| 5BR | $3,816 | $580,432 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 20640, located in Indian Head, MD, has a population of 10,685 residents. Only 21.3% of these residents are renters, indicating that this area is predominantly homeowner-dominated rather than renter-heavy. The median household income stands at $100,593, which provides context for evaluating the rental market.
The typical market rent in this area is $1,529 per month. This represents approximately 15.2% of the median household income when considering a single-income household. However, given the median income, it's likely many households have dual incomes, which would further reduce the percentage of income spent on rent.
Comparing the market rent to the Fair Market Rent (FMR), which is set at $1,860 for FY 2024, reveals that the actual market rent is below the FMR. This suggests that landlords might be able to adjust their rents upwards to align closer with the FMR without losing tenants, assuming they offer competitive amenities and conditions.
In terms of voucher availability, the scarcity of renters implies that there may not be a deep pool of Section 8 voucher holders. Landlords should anticipate a tenant pool that is primarily composed of individuals and families who can afford market-rate rents. However, those who do accept vouchers will find that the maximum amount ($1,860) covers more than the typical market rent, potentially leaving some room for profit even while participating in the Section 8 program.
A landlord in this area should expect tenants who are financially stable, given the relatively high median income compared to the market rent. Tenants using Section 8 vouchers will likely be a smaller segment of the overall rental market, but they can still provide a steady stream of income due to the government-backed nature of the program. For those considering accepting vouchers, the financial support from the government will ensure that the rent is paid consistently, despite the lower proportion of renters in the area.
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.