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 | $2,320 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,680 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $4,020 |
| 5 Bedrooms | $4,663 |
| 6 Bedrooms | $5,223 |
| 7 Bedrooms | $5,641 |
| 8 Bedrooms | $5,923 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,680 | $335,074 | 0.8% | D |
| 3BR | $3,420 | $404,711 | 0.85% | C |
| 4BR | $4,020 | $467,423 | 0.86% | C |
| 5BR | $4,663 | $521,328 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 20735, specifically Clinton, Maryland, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 20735 in fiscal year 2024 is set at $2280, while the market rent, as indicated by the Zillow Rent Index (ZORI), stands at $2790. This means that the FMR is $510 less than the market rent, representing a 18.3% discount.
Given that the FMR is lower than the market rent, landlords should be aware of the financial implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates can impact profitability. For instance, a landlord might receive $2280 per month from the government for a property that could otherwise fetch $2790 in the open market, resulting in a monthly shortfall of $510.
In Clinton, MD, where only 9.3% of residents are renters and the median home value is $439,608, the appeal of Section 8 properties lies in their ability to provide steady, government-backed rental income. Despite the relatively low proportion of renters, the median household income of $126,196 suggests that many potential voucher holders face affordability challenges in the local housing market.
Landlords and small-portfolio investors must weigh the benefits of guaranteed rental payments against the reduced rate compared to market rents. While the FMR provides a predictable income stream, it does not fully capture the market value, which could result in lower yields. To maximize returns, investors should consider the broader economic context of Clinton, including the high median home values and the income levels of residents, when deciding whether to participate in the Section 8 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.