Section 8 Fair Market Rent (FMR) for ZIP 20775 - 2027
Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if a landlord should buy in ZIP code 20775 for Section 8 purposes, follow these decision points:
- 1) Does the Fair Market Rent (FMR) of $1780 cover debt service on a property?
- Yes: If the FMR of $1780 is sufficient to cover all mortgage payments, taxes, insurance, and maintenance costs, then purchasing a property for Section 8 tenants in this area is financially viable.
- No: If the FMR of $1780 does not meet or exceed the total debt service requirements, investing in this ZIP code for Section 8 would not be advisable due to potential financial losses.
- 2) How does the market rent compare to the FMR?
- Above FMR: If the average market rent exceeds $1780, landlords might prefer traditional renting over Section 8 to maximize income.
- At FMR: If the market rent is around $1780, then Section 8 could be a reasonable option as it matches the expected income.
- Below FMR: If the market rent is below $1780, Section 8 could offer a more stable and predictable income source compared to the local rental market.
- 3) Is there sufficient tenant demand?
- It Depends: The data provided does not specify the percentage of renters or the days on the market (DOM) for properties in ZIP 20775. To make an informed decision, landlords must assess the local rental market dynamics. High percentages of renters and low DOM indicate strong demand, which is favorable for Section 8 investments.
Without specific figures on the percentage of renters and DOM, landlords must gather additional information to fully evaluate the viability of Section 8 investments in ZIP 20775. They should also consider the stability and predictability of Section 8 income against the volatility of market rents.
Data Sources: FMR data from HUD (2027).
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.