Section 8 Fair Market Rent (FMR) for ZIP 20783 - 2027

Investment Score for ZIP 20783

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	$1,920
1 Bedroom	$2,010
2 Bedrooms	$2,220
3 Bedrooms	$2,830
4 Bedrooms	$3,330
5 Bedrooms	$3,863
6 Bedrooms	$4,327
7 Bedrooms	$4,673
8 Bedrooms	$4,907

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	$2,010	$116,791	1.72%	A+
2BR	$2,220	$150,499	1.48%	A
3BR	$2,830	$410,076	0.69%	D
4BR	$3,330	$464,309	0.72%	D
5BR	$3,863	$491,877	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20783 (Langley Park, DC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 20783, as set by HUD for 2026, is $2060 for a two-bedroom apartment. This figure represents 28.5% of the median household income of $86,737 in the area. However, the actual rental market in Langley Park is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom property is $153,667, which translates to a price-to-FMR ratio of 6.2x. This means that the average rent for a two-bedroom unit is likely much higher than the FMR, creating a challenging environment for Section 8 voucher holders who can only afford up to the FMR amount. Given these dynamics, voucher holders face significant constraints. They must find landlords willing to accept the voucher amount, which is often below market rates. Additionally, they may struggle to secure units that meet their size requirements due to the high cost of housing. The disparity between the FMR and actual rents suggests that many voucher holders might be limited to smaller units or face difficulties finding suitable housing altogether. #### Affordability & Renter Profile Langley Park has a population of 50,333, with 57.7% of residents being renters. This indicates a strong rental market with a high demand for apartments. The occupancy rate of 96.1% further supports the notion that the market is tight, with very few vacant units available. Given the median household income of $86,737, the majority of renters are likely middle-class individuals or families who can afford higher rents but still benefit from the lower FMR for Section 8 vouchers. Despite the relatively high median income, the high rent-to-income ratio and the tight market suggest that affordability remains a significant issue. The median household income is not sufficient to cover the average rent without assistance, making the Section 8 program crucial for many residents. However, the limited supply of affordable units means that competition among voucher holders and other low-income renters is fierce. #### Investor Angle From an investor perspective, the ZIP code 20783 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2060, which is substantially lower than the market rent. However, this does not necessarily mean that investors will be able to achieve positive cash flow at the FMR level. The high price-to-FMR ratio of 6.2x implies that the purchase price of properties is much higher than what the FMR would suggest is a reasonable rental value. To determine if this ZIP code is cash-flow positive at the FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of 1% of the purchase price for annual maintenance and a 1% property tax rate, the total expenses for a two-bedroom property priced at $153,667 could easily exceed the FMR of $2060 per month. Therefore, it is unlikely that an investor would achieve positive cash flow solely based on the FMR. In terms of investment grade, the high price-to-FMR ratio and the tight rental market indicate that this ZIP code is not particularly attractive for investors focused on Section 8 properties. The primary challenge is the difficulty in finding tenants willing to pay the FMR, given the higher market rents. Additionally, the limited number of vacant units makes it hard to acquire properties at a price that would allow for positive cash flow. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high cost of larger units, investors should focus on acquiring one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1850, which is closer to the actual market rent. This strategy could help achieve better cash flow and attract more Section 8 voucher holders. 2. **Consider Property Value**: Investors should carefully evaluate the purchase price of properties relative to the FMR. Given the 6.2x price-to-FMR ratio, it is essential to find properties that are undervalued or have potential for renovation that could increase rental income. This approach could mitigate the risk of negative cash flow. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of vouchers and the preferences of voucher holders. This knowledge can help tailor marketing efforts and potentially secure long-term leases with stable income. #### Bottom Line For Section 8-focused investors, the ZIP code 20783 (Langley Park, DC) is generally not recommended for acquisition. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow. However, if investors are willing to take on the challenge, focusing on smaller units and engaging with local housing authorities could provide some advantages. Overall, the recommendation is to **skip** this ZIP code unless there are unique circumstances or strategies that can overcome the inherent challenges. This analysis is based on the provided data and does not account for any external factors such as changes in local policies, economic shifts, or specific property conditions.

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.