Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,060 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
The Section 8 thesis in ZIP code 20661 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. However, due to the lack of specific market rent data, we can only provide an analysis based on the available FMR figure for zip code 20661 in fiscal year 2024, which stands at $2010.
Without the exact market rent to compare against, it's challenging to quantify the gap in dollars and percentage accurately. But let's assume that the market rent is higher than the FMR, which is often the case in many areas. In such a scenario, landlords accepting Section 8 vouchers would be renting their properties below the open-market rate, leading to a lower potential rental income compared to what they could earn without participating in the Section 8 program.
If the FMR were to exceed the market rent, then the situation would favor landlords who accept Section 8 vouchers, as they could potentially achieve a higher yield on their investment. This is because the voucher would cover a larger portion of the rent, making it attractive for tenants who might otherwise struggle to afford market-rate rents.
However, since the market rent is not provided, we cannot determine whether the FMR of $2010 represents a yield play or a cost of housing voucher tenants below open-market rates. To make a well-informed decision, landlords and small-portfolio investors should gather current market rent data for ZIP 20661 and compare it against the FMR.
Additionally, the analysis must consider the broader context of the area. Unfortunately, the provided data does not include the percentage of renters, the median home value, or the median income for ZIP 20661. These factors are crucial for understanding the overall economic landscape and how it affects the demand for Section 8 housing and the potential for achieving higher yields or the costs associated with lower rents.
To proceed with a comprehensive analysis, one would need to fill in these missing pieces of information. The percentage of renters helps gauge the competition for rental properties, while the median home value and median income give insight into the financial capabilities of the residents and the relative attractiveness of Section 8 housing in the area.
Data Sources: FMR data from HUD (2027).
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.