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 | $2,490 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,670 |
| 4 Bedrooms | $4,320 |
| 5 Bedrooms | $5,011 |
| 6 Bedrooms | $5,612 |
| 7 Bedrooms | $6,061 |
| 8 Bedrooms | $6,364 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,600 | $289,241 | 0.9% | C |
| 2BR | $2,880 | $625,030 | 0.46% | F |
| 3BR | $3,670 | $1,040,319 | 0.35% | F |
| 4BR | $4,320 | $1,518,155 | 0.28% | F |
| 5BR | $5,011 | $2,165,705 | 0.23% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 20815 (Chevy Chase, MD) might raise several concerns regarding the feasibility of investing in rental properties through the Section 8 program. Here are three common objections, along with the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $2440 cover the mortgage on a $1,185,179 home?
The FMR of $2440 per month for ZIP 20815 might seem insufficient to cover the mortgage on a property valued at $1,185,179. However, it's important to consider that the median home value does not necessarily reflect the typical rental property. Smaller homes or apartments in the area can often be purchased for significantly less. According to recent data, a mortgage payment on a home priced around $700,000 could be covered by the FMR, especially when factoring in potential appreciation and tax benefits. This suggests that while the FMR may not cover the mortgage on the most expensive homes, it is still feasible for many properties in the area.
Objection 2: Is there enough renter demand at 33.7%?
The percentage of households that rent in ZIP 20815 stands at 33.7%, which may appear low compared to other areas with higher concentrations of renters. However, this figure does not tell the whole story. The area is known for its high-income residents, who may prefer renting over buying due to lifestyle choices or financial strategies. Additionally, the presence of a strong local economy, including proximity to Washington D.C., supports a steady demand for rental properties among professionals and families. While the data does not provide a detailed breakdown of the rental market dynamics, it's reasonable to conclude that there is sufficient demand for those willing to target the right demographic.
Objection 3: Will vouchers keep pace with $2,636 market rents?
The market rent in ZIP 20815 is reported to be $2,636 per month, which is notably higher than the FMR of $2440. This gap raises questions about whether voucher payments will be sufficient to cover the costs associated with maintaining a property. The data indicates that the Housing Choice Voucher program aims to ensure that voucher amounts remain competitive with market rents, but there is no guarantee they will fully bridge the difference. Landlords should prepare for some variance and potentially supplement voucher income with additional sources or consider targeting properties below the median market rent to ensure profitability.
In summary, while ZIP 20815 presents challenges such as high property values and a relatively low percentage of renter households, the data supports the viability of Section 8 investments. Careful selection of properties and understanding of the local market can mitigate these risks.
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.