Section 8 Fair Market Rent (FMR) for ZIP 20720 - 2027

Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,130
1 Bedroom	$3,260
2 Bedrooms	$3,610
3 Bedrooms	$4,600
4 Bedrooms	$5,420
5 Bedrooms	$6,287
6 Bedrooms	$7,041
7 Bedrooms	$7,604
8 Bedrooms	$7,984

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,015

Median Household Income

$158,997

Housing Units

8,441

Renter Percentage

8.7%

Occupancy Rate

98.3%

Renter Occupied

722

Housing Authorities Serving ZIP 20720

Housing Authority of Prince Georges County (Largo, MD) - 5,986 Section 8 vouchers
MD Dept. Of Housing and Community Development (Lanham, MD) - 2,868 Section 8 vouchers
College Park Housing Authority (College Park, MD)
Glenarden Housing Authority (Glenarden, MD)

To determine if you should buy in ZIP code 20720 (Bowie, MD) for Section 8 investment, follow these steps:

If the Fair Market Rent (FMR) of $2800 can cover the debt service on a property valued at $582,765:
- Yes. Proceed to the next step. If the FMR does not cover the debt service, the investment is not viable under current conditions.
Compare the Zillow Observed Rental Index (ZORI) of $3,348 to the FMR of $2800:
- ZORI is above FMR:
  - The local rental market is stronger than the FMR suggests, indicating potential for higher rents outside of Section 8. However, for Section 8 investments, focus on whether the FMR alone covers costs. If it does, consider the strength of the market as an added benefit.
- ZORI is at or below FMR:
  - The local rental market aligns with or falls below the FMR, which means you must rely solely on the FMR to cover expenses. This scenario requires a closer look at the demand for Section 8 housing.
Evaluate the demand for Section 8 properties:
- Are 8.7% of residents renters and does the average Days on Market (DOM) stand at 20 days?
  - Yes. The combination of a relatively high percentage of renters and a low DOM indicates strong demand for rental properties, including those that might accept Section 8 tenants. This supports the viability of a Section 8 investment in ZIP 20720.
  - No. If the percentage of renters is lower or the DOM is higher, demand for rental properties may not be sufficient to support a Section 8 investment. In such cases, the answer is no.

In summary, if the FMR of $2800 clears the debt service on a $582,765 property and there is strong demand indicated by 8.7% renters and a 20-day DOM, then yes, purchasing in ZIP 20720 for Section 8 is advisable. If the FMR does not cover debt service, the answer is no. If ZORI is significantly above FMR but the FMR still covers costs, the investment remains viable but with the caveat that you may also find opportunities in the broader rental market. If demand indicators are weak, the answer is no.

Data Sources: FMR data from HUD (2027). 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.