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 | $1,860 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,730 | $419,117 | 0.65% | D |
U.S. Census Bureau data (2024)
The ZIP code 20662, located in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for this area is set at $1390 per month for FY 2024, which is notably higher than the reported market rent of $1170 based on Census ACS data. This indicates that voucher tenants can typically cashflow comfortably at the HUD FMR rate without requiring premium units, thus providing a significant advantage over traditional market renters.
To further analyze the investment potential, consider the median home value in ZIP 20662, which stands at $400,051. Using this figure, we can calculate a rent-to-price ratio. At a market rent of $1170, the annual rent would be approximately $14,040, leading to a rent-to-price ratio of roughly 3.5%. This suggests that rental income represents a modest percentage of the property's total value, implying that appreciation rather than rental income might be the stronger driver of returns for real estate investors in this area.
The dynamics between renting and buying in ZIP 20662 are influenced by the lack of available data on median days on market (DOM) and the percentage of price cuts shared among listings. However, given the consistent demand for housing in the Washington metropolitan area, it is reasonable to assume that the real estate market remains stable despite fluctuations in other metrics. Stability in this context means that properties are likely to remain occupied for extended periods, reducing the risk of vacancy and ensuring steady cash flow.
The strongest angle for investors in ZIP 20662 is appreciation. Given the robust economy and high median home values, properties are likely to increase in worth over time, providing a solid foundation for long-term investment growth.
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.