Location: Washington-Arlington-Alexandria, DC | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $1,930 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $3,540 | $982,565 | 0.36% | F |
| 5BR | $4,106 | $1,249,815 | 0.33% | F |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 20777 for Section 8 landlords presents several potential challenges that must be carefully considered. First, tenant turnover is likely to be higher due to the gap between the market rent of $2,875 and the Fair Market Rent (FMR) of $2,810 for fiscal year 2024. This discrepancy can lead to increased administrative costs and time spent on finding and vetting new tenants who qualify under the program.
Vacancy exposure remains a significant concern, as the Days on Market (DOM) for properties in this area is not available. However, given the typical home value of $997,332 and the median income of $226,146, it's reasonable to infer that the local rental market is competitive. High property values relative to median incomes can exacerbate vacancy rates, especially if there is a preference for homeownership among residents.
Deferred maintenance is another risk factor. The substantial home values indicate that upkeep and maintenance can be costly, which might not be fully covered by the rental income received through Section 8 vouchers. Landlords need to ensure they have a budget for these expenses to avoid financial strain.
Despite these risks, the high renter share of 4.7% suggests a robust demand for rental properties, particularly those that accept Section 8 vouchers. In areas with a dense rental market, the likelihood of finding qualified tenants is generally higher, which can mitigate some of the concerns about vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 20777 is moderate. While there are notable challenges such as higher tenant turnover and potential for deferred maintenance, the strong rental market presence provides a solid foundation for managing these risks effectively.
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.