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 | $2,300 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,660 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,390 | $461,698 | 0.73% | D |
| 4BR | $3,990 | $543,805 | 0.73% | D |
U.S. Census Bureau data (2024)
518,264 is the median home value in ZIP code 20645, indicating a robust real estate market. However, the renter share stands at just 3.7%, suggesting a lower demand for rental properties compared to owner-occupied homes. Despite this, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1970, which provides a benchmark for rental pricing. The median income of $191,429 offers insight into the financial capability of potential tenants, though the lack of data on days on market (DOM) and the percentage of price-cut share makes it challenging to assess the liquidity and competitiveness of the housing market.
1970 is the FMR figure for ZIP 20645, XX, which landlords should consider when setting rents to remain competitive and attractive to Section 8 participants. Given the high median home value, it's clear that homeownership is a strong trend in the area, but the median income supports the possibility of higher-quality tenants who can afford the FMR rates.
3.7% is the proportion of renters in ZIP 20645, which is relatively low, pointing towards a market where owner-occupiers dominate. This could mean that landlords need to be particularly selective about their investment choices, focusing on areas or property types that are more likely to appeal to renters.
In conclusion, while the market in ZIP 20645 presents opportunities with its high median income and FMR, the limited rental market suggests that landlords must carefully evaluate their investments. The $1970 FMR provides a solid anchor for rental pricing, and the $191,429 median income ensures a pool of financially stable tenants. However, the low 3.7% renter share indicates a challenge in finding enough tenants to fill rental units. For small-portfolio investors considering Section 8 participation, the verdict is cautiously optimistic, contingent upon thorough due diligence and strategic property selection.
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.