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 | $1,770 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $282,942 | 0.72% | D |
| 3BR | $2,600 | $496,972 | 0.52% | F |
| 4BR | $3,060 | $515,290 | 0.59% | F |
| 5BR | $3,550 | $494,228 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 20781, located in Edmonston, MD, within Prince George's County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1700. This means that the maximum amount a landlord can receive from the housing authority for a two-bedroom unit under a Section 8 voucher is $1700 per month.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), run slightly higher at $1821 for a two-bedroom apartment in ZIP 20781. This difference highlights the importance of understanding how the voucher system works to ensure you are receiving the most favorable compensation.
A landlord's actual reimbursement from a Section 8 voucher involves several components. The tenant is responsible for paying a portion of the rent, typically around 30% of their income. For simplicity, let’s assume the tenant's portion is $510, which is based on a household income of $17,000 annually. In addition to the base rent, there are utility allowances that vary but can be estimated at $250 per month for a two-bedroom unit. These allowances cover electricity, gas, water, and sewer costs.
To calculate the total reimbursement a landlord would receive, add the tenant's contribution and the utility allowance to the SAFMR. Thus, the total reimbursement would be $510 (tenant portion) + $250 (utility allowance) + $1700 (SAFMR) = $2460. However, it's crucial to note that the housing authority will only pay up to the SAFMR of $1700 for the base rent. Therefore, the landlord must balance the tenant's payment and the utility allowance against the SAFMR cap.
In ZIP 20781, where the market rent is $1821, landlords may find themselves with a reimbursement gap. To determine this gap, subtract the SAFMR from the market rent: $1821 - $1700 = $121. This means landlords could face a shortfall of $121 per month if they rely solely on the Section 8 voucher program without adjusting for additional payments from tenants or utility allowances.
In summary, while the SAFMR provides a benchmark for rental subsidies, landlords in ZIP 20781 should be aware of the potential reimbursement gap of $121 for a two-bedroom unit when comparing the SAFMR to the local market rent. Understanding these dynamics is key to making informed decisions about participating in the Section 8 program.
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.