Section 8 Fair Market Rent (FMR) for ZIP 20772 - 2027

Investment Score for ZIP 20772

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	$2,190
1 Bedroom	$2,290
2 Bedrooms	$2,530
3 Bedrooms	$3,220
4 Bedrooms	$3,800
5 Bedrooms	$4,408
6 Bedrooms	$4,937
7 Bedrooms	$5,332
8 Bedrooms	$5,599

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,530	$315,603	0.8%	C
3BR	$3,220	$435,225	0.74%	D
4BR	$3,800	$548,818	0.69%	D
5BR	$4,408	$684,075	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20772 (Upper Marlboro, MD) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 20772 are as follows for 2026: - 0BR: $2000 - 1BR: $2060 - 2BR: $2300 (which is 19.8% of the median household income) - 3BR: $2900 - 4BR: $3410 To understand how these FMRs compare to actual rents, we can look at the Zillow median price for a 2BR property, which is $316,555. The price-to-FMR ratio for a 2BR unit is 11.5x, indicating that the actual rental prices are significantly higher than the FMR. This suggests that voucher holders face significant constraints in finding affordable housing within the ZIP code. For instance, a 2BR unit priced at $2300 would be challenging to find given the high actual rental prices. #### Affordability & Renter Profile ZIP code 20772 has a population of 54,319, with only 10.7% of residents being renters. This indicates that the majority of the population owns their homes, suggesting a relatively tight rental market. The occupancy rate of 96.8% further supports this notion, as it implies that most available units are already occupied. Given the median household income of $139,403, the typical renter in this area likely has a higher income compared to the national average, making them less reliant on government assistance programs like Section 8 vouchers. The fact that 2BR units cost 19.8% of the median income highlights the affordability challenges faced by lower-income households. With such a small percentage of the population renting, there is limited supply and high demand, leading to higher rental prices. Consequently, the tight market makes it difficult for voucher holders to secure housing, especially since the FMR is much lower than the actual rental prices. #### Investor Angle From an investor perspective, the ZIP code 20772 presents both opportunities and challenges. The high actual rental prices suggest that properties could potentially generate strong cash flow if they can be rented out at market rates. However, the FMRs are significantly lower, which means that properties rented through Section 8 vouchers would yield much less revenue. Given the Zillow median price for a 2BR unit of $316,555 and the FMR of $2300, the investment grade would depend heavily on the ability to secure tenants willing to pay market rates. If the investor relies solely on Section 8 vouchers, the cash flow would likely be negative due to the low FMR relative to the high purchase price. #### Specific Actionable Insights 1. **Target Market-Sensitive Properties**: Investors should focus on properties that are slightly below market value but still within the range of what voucher holders can afford. For example, a 2BR unit priced around $2500-$2800 might attract both market-rate and voucher tenants, providing a balance between cash flow and occupancy. 2. **Consider Property Size**: Given the high FMR for larger units, it might be more profitable to invest in smaller units (0BR or 1BR) where the gap between FMR and market rates is less pronounced. A 1BR unit priced at $2060 could still be attractive to some voucher holders while generating better returns than larger units. 3. **Diversify Tenant Mix**: To mitigate risk, investors should consider diversifying their tenant mix. By having a combination of market-rate and Section 8 voucher tenants, they can ensure steady cash flow while also serving the needs of lower-income residents. #### Bottom Line For investors focused on Section 8 vouchers, ZIP code 20772 is generally not recommended due to the tight rental market and the significant disparity between FMR and actual rental prices. The high median household income and low percentage of renters indicate that the market is primarily driven by homeowners, leaving little room for affordable rentals. Therefore, the recommendation is to **Skip** this ZIP code for Section 8-focused investments. Instead, investors should look for areas with a higher percentage of renters and a closer alignment between FMR and market rental prices to ensure positive cash flow and successful occupancy.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.