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 | $2,620 |
| 1 Bedroom | $2,730 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,850 |
| 4 Bedrooms | $4,530 |
| 5 Bedrooms | $5,255 |
| 6 Bedrooms | $5,886 |
| 7 Bedrooms | $6,357 |
| 8 Bedrooms | $6,675 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,730 | $234,908 | 1.16% | B |
| 2BR | $3,020 | $377,308 | 0.8% | C |
| 3BR | $3,850 | $935,278 | 0.41% | F |
| 4BR | $4,530 | $1,178,927 | 0.38% | F |
| 5BR | $5,255 | $1,811,659 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 20814, located in Bethesda, MD, within Montgomery County and part of the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, reveals a rental market where the Federal Market Rent (FMR) set at $2380 for fiscal year 2024 falls below the market rent of $2,773, as indicated by Zillow's ZORI index. This means that landlords accepting Section 8 vouchers will experience a marginal cash flow scenario, with a shortfall of approximately $393 per unit compared to market rates.
To further contextualize this, the median home value in the area is $770,180. Using this figure, we can calculate the rent-to-price ratio by dividing the average monthly rent by the median home value, then multiplying by 12 to annualize it. The calculation yields a ratio of about 3.6%, suggesting that the rental income generated from properties in this area is relatively low compared to their purchase price. This implies that property appreciation could be a stronger factor for investment returns than rental income alone.
The dynamics of the rental market also show a median Days on Market (DOM) of 23 days and a price-cut share of just 0.2%. These figures indicate a robust demand for rentals, with minimal need for landlords to reduce asking prices, thus maintaining a steady rental income. However, given the gap between the FMR and market rents, landlords might find themselves needing to offer slightly above-average market conditions to attract voucher holders, which could impact their overall margins.
The strongest investor angle in this market is likely stability. Despite the marginal cash flow situation, the consistent demand for rentals and the low rate of price reductions suggest a reliable and predictable rental environment, making it an attractive option for investors seeking long-term, stable investments.
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.