Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| 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 decide whether you should invest in ZIP 20790 (Unknown, DC) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1780 for the zip code in fiscal year 2024 cover the debt service on a property?
No: Do not consider purchasing in ZIP 20790. The FMR does not provide sufficient income to cover your mortgage payments and other expenses.
Yes: Proceed to the next question. The FMR can potentially support your debt service requirements.
2) Is the market rent above, at, or below the FMR of $1780?
Above: It depends. If the market rent significantly exceeds the FMR, you might struggle to find tenants willing to pay the higher rate, especially if they are on Section 8 vouchers. This could lead to prolonged vacancy periods.
At: Yes. Market rents aligning with the FMR suggest that you can attract tenants without difficulty, and they can afford the rent with their vouchers.
Below: Yes. If the market rent is below the FMR, you can still attract tenants, but you will need to adjust your rental price to match the market conditions to ensure occupancy.
3) Are the number of renters and days on the market (DOM) sufficient to meet demand?
It depends: With incomplete data on the percentage of renters and the DOM, you cannot make a definitive decision. However, if you find that the percentage of renters is high and the DOM is relatively low, indicating strong demand, then you can proceed with confidence. Conversely, if the percentage of renters is low and the DOM is high, suggesting weak demand, then investing in this area would be risky.
Note: Due to missing specific percentages for renters and days on the market, the final assessment relies heavily on the FMR and market rent alignment. Ensure you conduct thorough research or consult local real estate experts to fill these data gaps before making an investment decision.
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.