Section 8 Fair Market Rent (FMR) for ZIP 20744 - 2027

Investment Score for ZIP 20744

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,880
1 Bedroom	$1,960
2 Bedrooms	$2,170
3 Bedrooms	$2,770
4 Bedrooms	$3,260
5 Bedrooms	$3,782
6 Bedrooms	$4,236
7 Bedrooms	$4,575
8 Bedrooms	$4,804

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,170	$262,681	0.83%	C
3BR	$2,770	$395,169	0.7%	D
4BR	$3,260	$486,520	0.67%	D
5BR	$3,782	$549,496	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20744 (Fort Washington, DC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 20744 is set by HUD for 2026, with specific rates for different unit sizes. For a two-bedroom apartment, the FMR is $2,010 per month, which represents 19.4% of the median household income in the area. This suggests that a significant portion of the population can afford rent without financial strain. However, comparing these figures to actual rental prices reveals a stark disparity. The Zillow median price for a two-bedroom home in this ZIP code is $264,236, indicating a high cost of ownership. The price-to-FMR ratio is 11.0x, meaning that the median home value is over eleven times the monthly rent for a similar-sized unit. This ratio implies that the rental market is relatively expensive compared to the purchase market. For voucher holders, the FMR serves as a benchmark for what they can pay, but it is likely that many landlords will not accept vouchers due to the higher potential rental income from non-voucher tenants. Additionally, the FMR is often lower than the actual market rent, creating a constraint for voucher holders who may struggle to find affordable housing options within their budget. #### Affordability & Renter Profile ZIP code 20744 has a population of 54,441, with 18.1% being renters. The occupancy rate is 94.3%, suggesting a robust demand for housing units. Given the median household income of $124,190, the majority of residents are financially stable and can afford higher rents. The relatively low percentage of renters indicates that homeownership is prevalent, possibly due to the affordability of purchasing homes compared to renting them. The tight market conditions mean that rental properties are highly sought after, and competition among renters is fierce. This situation is further exacerbated by the limited supply of rental units relative to the number of residents. As a result, landlords have the upper hand in setting rental prices, which tend to be higher than the FMR. This makes it challenging for voucher holders to secure housing, as they are restricted to paying no more than the FMR. #### Investor Angle From an investor perspective, the ZIP code 20744 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,010, which is significantly lower than the average rental prices in the area. If an investor were to purchase a property and rent it out at the FMR, they would likely face negative cash flow, especially considering the high median home values. To determine the investment grade, we need to consider the potential for positive cash flow. With the Zillow median price for a two-bedroom home being $264,236, the monthly mortgage payment on a typical 30-year fixed-rate mortgage at 5% interest would be approximately $1,350. Adding in other costs such as property taxes, insurance, and maintenance, the total monthly expenses could easily exceed the FMR. Therefore, relying solely on Section 8 vouchers would not be financially viable for most investors. #### Specific Actionable Insights 1. **Focus on Non-Voucher Tenants**: Given the high median income and the tight rental market, investors should focus on attracting non-voucher tenants who are willing to pay above the FMR. This strategy can help ensure positive cash flow and a better return on investment. For example, targeting tenants who can afford to pay $2,500 or more for a two-bedroom unit would be more profitable. 2. **Consider Mixed-Income Developments**: Investors might want to explore mixed-income developments where a portion of the units are reserved for voucher holders, while others cater to higher-paying tenants. This approach can balance the financial risks and rewards, ensuring that the overall portfolio remains profitable. 3. **Evaluate Property Value vs. Rental Income**: Before investing, carefully evaluate whether the property value aligns with the potential rental income. In ZIP code 20744, the high median home values suggest that the cost of acquisition is high, and the rental income must be sufficient to cover all expenses and provide a reasonable profit margin. #### Bottom Line Given the high median home values and the tight rental market, ZIP code 20744 is not recommended for investors focusing exclusively on Section 8 vouchers. The FMR is substantially lower than the actual rental prices, making it difficult to achieve positive cash flow. Instead, investors should consider a diversified approach that includes non-voucher tenants to ensure profitability. **Recommendation**: Skip this ZIP code for pure Section 8 investments and instead look for areas with a higher percentage of renters and lower median home values. Alternatively, consider a mixed-income development strategy to balance the financial risks and rewards.

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.