Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
ZIP 20658, located within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for FY 2024 in this ZIP code is set at $1860, while the market rent stands at $1609. This means that the spread between the FMR and the market rent is $251, providing landlords with a guaranteed higher rental income compared to the local market rate.
The median home value in ZIP 20658 is $366,650, indicating a stable housing market. However, the primary focus for Section 8 landlords should be on the guaranteed rental income rather than the potential for home value appreciation, as the appreciation play metric is not applicable here. With a 13.7% renter share and a median income of $104,375, this area has a significant number of residents who can afford to pay market rent, but the Section 8 program ensures a steady stream of income regardless of market fluctuations.
The cash-flow anchor role is further reinforced by the fact that the government subsidizes the difference between the FMR and what the tenant can afford based on their income. In ZIP 20658, this subsidy provides a buffer against non-payment and ensures that landlords receive a consistent income even if market conditions change. Therefore, including properties in ZIP 20658 in a Section 8 portfolio will help stabilize overall cash flow and reduce financial risk.
Data Sources: FMR data from HUD (2027). 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.