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 | $1,700 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $331,782 | 0.59% | F |
| 3BR | $2,500 | $416,081 | 0.6% | D |
| 4BR | $2,940 | $545,067 | 0.54% | F |
| 5BR | $3,410 | $627,699 | 0.54% | F |
U.S. Census Bureau data (2024)
13.5% of the population in ZIP 20646, La Plata, MD, are renters, indicating a moderate demand for rental properties. The $1,541 market rent figure, derived from the Census ACS, suggests that the average monthly rent is below the Fair Market Rent (FMR) of $1820 for the area, which is set for zip FY 2024. This discrepancy indicates potential opportunities for landlords to increase rents without exceeding the FMR threshold, thus maximizing their returns while remaining competitive.
The median home value in La Plata stands at $478,522, providing a benchmark for property values in the region. For investors looking to purchase properties, this figure can help assess the potential resale value and investment growth over time. Additionally, the median income of $131,974 offers insight into the economic capacity of residents, ensuring that there is a stable financial base supporting the local housing market.
With a Days on Market (DOM) average of 37 days, it's evident that properties are moving quickly once they are listed, suggesting a healthy real estate market where listings turn into sales relatively fast. The low price-cut share of 0.2% further supports this notion, indicating that sellers are achieving their asking prices without needing to reduce them significantly, which bodes well for maintaining property values and minimizing financial risk for investors.
In conclusion, given the data points from ZIP 20646, the Section 8 program presents a viable option for landlords and small-portfolio investors. The $1820 FMR aligns closely with the market conditions, allowing for reasonable rental income that is both fair and competitive. With the current economic indicators showing stability and the real estate market demonstrating efficiency, investing in Section 8 properties in La Plata, MD, can be a strategic move towards steady and predictable returns.
Verdict: Section 8 is a solid investment option in La Plata, MD.
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.