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 | $1,860 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,150 | $203,126 | 1.06% | B |
| 3BR | $2,740 | $341,330 | 0.8% | C |
| 4BR | $3,230 | $391,035 | 0.83% | C |
| 5BR | $3,747 | $418,015 | 0.9% | C |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 20747, which encompasses District Heights, MD, in Prince George's County within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, is set at $1,660 for the fiscal year 2024. In comparison, the market rent, measured by the Zillow Observed Rental Index (ZORI), stands at $1,600. This indicates that voucher tenants will cashflow at the FMR rate, but landlords may experience marginal cash flow when renting at the market rate.
To further analyze the investment potential, consider the median home value in the area, which is $342,011. The rent-to-price ratio can be calculated by dividing the annual rent ($19,200 based on the ZORI) by the median home value. This yields a ratio of approximately 5.6%, suggesting that rental income is relatively low compared to property values. However, this ratio also implies that the area is attractive for long-term investments, given the potential for rental income to grow as property values increase.
The median days on market (DOM) for properties in this ZIP code is 24 days, and the share of listings that experienced a price cut is just 0.2%. These metrics indicate a strong seller's market where properties are moving quickly and at or near their asking prices. For investors, this means that while finding tenants might be slightly challenging due to the lower market rent compared to the FMR, once a tenant is secured, they are likely to stay for an extended period, contributing to the stability of the investment.
The strongest angle for investors in ZIP code 20747 is stability, given the quick turnover of properties and the high demand for rentals, even if the cash flow is initially marginal. This stability ensures consistent returns and minimizes the risk of vacancy, making it an ideal location for those looking to build a reliable portfolio of rental properties.
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.