Section 8 Fair Market Rent (FMR) for ZIP 20748 - 2027

Investment Score for ZIP 20748

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	$1,690
1 Bedroom	$1,760
2 Bedrooms	$1,950
3 Bedrooms	$2,490
4 Bedrooms	$2,930
5 Bedrooms	$3,399
6 Bedrooms	$3,807
7 Bedrooms	$4,112
8 Bedrooms	$4,318

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
1BR	$1,760	$112,979	1.56%	A+
2BR	$1,950	$138,529	1.41%	A
3BR	$2,490	$346,749	0.72%	D
4BR	$2,930	$420,847	0.7%	D
5BR	$3,399	$447,185	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20748 (Temple Hills, DC) #### Section 8 Voucher Dynamics In ZIP code 20748, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1870 per month for 2026. This amount represents 27.0% of the median household income of $83,162. However, it is important to note that the actual median rent for a two-bedroom unit on Zillow is significantly lower at $143,379, which translates to a monthly rental cost of approximately $1194 based on a typical mortgage payment structure. The price-to-FMR ratio of 6.4x indicates that the median home value is much higher than the FMR, suggesting that the housing market is skewed towards homeownership rather than rental properties. Given these figures, voucher holders face significant constraints. The FMR is notably higher than what the median rent suggests, meaning that voucher holders might struggle to find units that accept their vouchers without substantial out-of-pocket expenses. For instance, a voucher holder would need to pay an additional $676 per month if they were to rent a property at the FMR compared to the median rent. #### Affordability & Renter Profile The population of Temple Hills is 40,338, with 42.9% being renters. This indicates a moderate rental market presence, but the occupancy rate of 95.6% suggests that there is little vacancy, making it a relatively tight market for renters. The high occupancy rate also implies that landlords have less incentive to lower rents or offer incentives to attract tenants. Given the median household income of $83,162, the majority of residents can afford to own homes, especially considering the median home value of $143,379. However, the 42.9% of residents who are renters likely consist of individuals and families who are either young professionals, low-income households, or those who prefer renting over buying. The median rent being much lower than the FMR further supports the idea that the rental market is somewhat affordable for those who do not qualify for Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 20748 presents a mixed picture. While the median home value is lower than the FMR, the actual rental costs are still relatively high for voucher holders. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the average rental income against the average operating costs. Assuming a typical operating cost of around 50% of the rental income (including maintenance, taxes, insurance, and other expenses), a landlord could expect to net about $935 per month from a two-bedroom unit rented at the FMR of $1870. This is a positive cash flow scenario, but it requires finding a unit that is willing to accept Section 8 vouchers, which can be challenging due to the tight rental market and the preference for higher-paying tenants. The investment grade of this ZIP code is moderate. The high occupancy rate and the presence of a significant number of renters indicate demand, but the constraints faced by voucher holders and the potential difficulty in finding units that accept them make it a less attractive option for investors solely focused on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Given the high FMR compared to actual rents, investors should focus on acquiring units that are priced below the FMR. For example, a two-bedroom unit priced at $1600 per month would be more attractive to voucher holders and provide a better chance of securing a tenant. This would also allow for a slightly higher profit margin once the voucher subsidy is applied. 2. **Consider Multi-Family Properties**: Single-family homes might be harder to rent at FMR due to the tight market and the preference for homeownership. Multi-family properties, such as duplexes or small apartment buildings, might offer more flexibility and a higher likelihood of attracting voucher holders. These properties can also benefit from economies of scale, reducing the overall cost per unit. 3. **Engage with Local Real Estate Agents**: Given the complexity of finding units that accept Section 8 vouchers, engaging with local real estate agents who specialize in rental properties can provide valuable insights and connections. They can help identify properties that are more likely to accept vouchers and navigate the local rental market dynamics. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 20748 is to **Hold**. While there is potential for positive cash flow, the challenges in finding units that accept vouchers and the relatively high FMR compared to actual rents make it a less favorable option. Investors should carefully evaluate the specific units and consider the broader market dynamics before committing to purchases in this area.

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.