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 | $2,020 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,330 | $285,198 | 0.82% | C |
| 3BR | $2,970 | $393,168 | 0.76% | D |
| 4BR | $3,500 | $541,333 | 0.65% | D |
| 5BR | $4,060 | $585,289 | 0.69% | D |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 20708 in Laurel, MD, include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. Tenant turnover can be problematic due to the disparity between the market rent of $1,627 and the Fair Market Rent (FMR) of $1,940 for FY 2024. This difference indicates that tenants receiving Section 8 vouchers might struggle to cover the gap between their subsidy and the actual market rent, leading to higher turnover rates.
Vacancy exposure is another concern. The average days on market (DOM) for properties in this area is not available, which makes it difficult to predict how long a property might remain vacant. Given the typical home value of $486,602 and the median income of $83,367, landlords must also prepare for the possibility of deferred maintenance. The relatively high home values combined with lower median incomes suggest that tenants may not have the financial capacity to handle extensive repairs or upgrades, placing the burden on the landlord to maintain the property's condition.
However, these risks must be weighed against the high demand for rental properties in the area. With a renter share of 64.4%, there is a strong likelihood of a robust demand for Section 8 vouchers. High renter density generally translates into a larger pool of potential tenants, which can mitigate the risk of vacancies and ensure a steady stream of applications. Additionally, the presence of a large number of renters increases the chances of finding qualified applicants who can meet the requirements of the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.