Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,860 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
The real estate market in ZIP 20704 (Washington, D.C.) presents a complex landscape for both landlords and small-portfolio investors. The median home value is currently unavailable, which suggests a lack of recent sales data, possibly indicating a stagnant market. However, the fact that a significant percentage of listings have been reduced, along with the median days on market (DOM), points towards a sellers' market with limited inventory and increasing competition among buyers. This dynamic supports strong pricing power over the next 12-24 months, as demand outpaces supply.
On the rental side, the Fair Market Rent (FMR) for ZIP 20704 is set at $1780 for fiscal year 2024. While the exact figure for the current market rent is not available, the FMR serves as a benchmark for assessing rental rates. Given the high FMR and the potential for increased buyer competition, it's reasonable to anticipate that rental prices will also rise, driven by the overall cost of living and housing scarcity. Landlords can leverage this trend to adjust their rental rates accordingly, ensuring they remain competitive while maximizing returns.
For long-hold investors, the appreciation thesis in ZIP 20704 is anchored in the enduring strength of Washington, D.C.'s economy and the consistent demand for housing. The city's robust job market, coupled with its status as a political and cultural hub, underpins the belief that property values will continue to grow over time. However, the exact rate of appreciation remains uncertain without specific historical data, but the current trends suggest a positive outlook for those willing to hold onto their investments for an extended period.
In summary, the combination of limited inventory, reduced listings, and high FMR signals a favorable environment for landlords and investors in ZIP 20704. Pricing power is likely to be strong, and rental rates may increase in line with the FMR. Long-term appreciation is supported by the city's economic fundamentals, though precise figures are not available at this time.
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.