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 | $1,660 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $302,019 | 0.58% | F |
| 2BR | $1,920 | $311,003 | 0.62% | D |
| 3BR | $2,450 | $364,111 | 0.67% | D |
| 4BR | $2,880 | $427,200 | 0.67% | D |
| 5BR | $3,341 | $438,513 | 0.76% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 20745, located in Forest Heights, MD, include higher tenant turnover due to the difference between the market rent of $1,997 and the Fair Market Rent (FMR) of $1,600 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which may result in increased administrative burdens and maintenance costs.
Vacancy exposure is another concern, as the average days on market (DOM) stands at 66 days. This means that a property could remain vacant for nearly two months before securing a new tenant, leading to lost rental income during this period. The financial impact of such vacancies can be significant, especially when considering the typical home value of $361,923 and the median income of $75,236 in the area.
Deferred maintenance is also a risk factor. Properties in ZIP 20745 often require upkeep, and landlords must ensure they can afford the necessary repairs and improvements without overextending their budget. The cost of maintaining a property at these levels can be substantial, particularly when compared to the median income of residents.
However, these risks are somewhat mitigated by the high renter share of 55.3%. A large proportion of renters typically translates into higher demand for housing vouchers, which can provide a steady stream of tenants willing to use Section 8 vouchers. This demand can help landlords maintain consistent occupancy rates and reduce the likelihood of extended vacancies.
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.