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 | $2,550 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $2,950 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,430 |
| 5 Bedrooms | $5,139 |
| 6 Bedrooms | $5,756 |
| 7 Bedrooms | $6,216 |
| 8 Bedrooms | $6,527 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,950 | $329,286 | 0.9% | C |
| 3BR | $3,760 | $445,735 | 0.84% | C |
| 4BR | $4,430 | $616,295 | 0.72% | D |
| 5BR | $5,139 | $715,196 | 0.72% | D |
U.S. Census Bureau data (2024)
ZIP code 20721, located in Bowie, MD, falls within the broader Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 20721 in fiscal year 2024 is set at $2,710. This figure is slightly above the area's average market rent of $2,676, indicating that it is positioned as a mid-tier neighborhood in terms of rental costs.
The median home value in ZIP 20721 stands at $593,617. This is lower than the typical home values found in many other ZIP codes within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, which can exceed $700,000. Thus, ZIP 20721 represents a relatively affordable option for homeownership within the metro area.
The renter share in ZIP 20721 is 10.5%, which is notably lower than the overall renter share in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. This suggests that the majority of residents in ZIP 20721 prefer homeownership over renting, unlike some other ZIP codes where higher renter shares might be indicative of a more transient population or a greater focus on rental properties.
Given the slightly elevated FMR compared to the market rent, combined with the lower median home value, ZIP 20721 presents an interesting scenario for Section 8 landlords and small-portfolio investors. It is not a premium sub-market due to the lower home values but also not a value pocket because the rental rates are close to the metro average. Instead, it could be considered a mid-tier neighborhood that offers a balance between affordability and accessibility for low-income renters.
A key point of interest is the divergence between the renter share and home values. While the renter share is relatively low, the home values are also below the metro average. This combination does not necessarily signal a Section 8 sweet spot, as typically such areas would have a higher renter share with lower home values. However, the proximity to the metro average in terms of rental costs still makes ZIP 20721 a viable option for investors looking to participate in the Section 8 housing program.
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.