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 | $2,170 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,750 |
| 5 Bedrooms | $4,350 |
| 6 Bedrooms | $4,872 |
| 7 Bedrooms | $5,262 |
| 8 Bedrooms | $5,525 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,260 | $200,198 | 1.13% | B |
| 2BR | $2,500 | $286,335 | 0.87% | C |
| 3BR | $3,190 | $400,562 | 0.8% | D |
| 4BR | $3,750 | $541,848 | 0.69% | D |
| 5BR | $4,350 | $601,774 | 0.72% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 20707 in Laurel, MD, for fiscal year 2024 is set at $1,970. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; rather, it's the benchmark used to determine the rent subsidy provided by the government.
To put this into perspective, the local median asking rent for a similar property is $2,091, based on the Zillow Observed Rent Index (ZORI). This indicates that the FMR is slightly below the average market rate, but still provides a reasonable income for landlords participating in the Section 8 program.
The 45.1% share of renters in the area suggests a strong demand for rental properties, including those under Section 8. This high percentage of renters in the community means there is a steady pool of potential tenants looking for affordable housing options.
When considering the acquisition cost of a property in this ZIP code, the median home value stands at $414,262. This figure should be taken into account when evaluating the potential profitability of a Section 8 rental property. While the initial investment might seem high, the consistent income from the government subsidy can provide long-term stability and a reliable source of passive income.
Before making your final decision, verify that the property meets all the necessary requirements for Section 8 participation. These include passing a habitability inspection and being up to code in terms of safety and maintenance standards. This step is crucial to ensure compliance and avoid any issues that could delay or prevent you from receiving the promised subsidies.
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.