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 | $2,810 |
| 1 Bedroom | $2,930 |
| 2 Bedrooms | $3,240 |
| 3 Bedrooms | $4,130 |
| 4 Bedrooms | $4,860 |
| 5 Bedrooms | $5,638 |
| 6 Bedrooms | $6,315 |
| 7 Bedrooms | $6,820 |
| 8 Bedrooms | $7,161 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,930 | $254,280 | 1.15% | B |
| 2BR | $3,240 | $562,702 | 0.58% | F |
| 3BR | $4,130 | $1,171,710 | 0.35% | F |
| 4BR | $4,860 | $1,461,062 | 0.33% | F |
| 5BR | $5,638 | $1,962,085 | 0.29% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 20816, Bethesda, MD, include tenant turnover and vacancy exposure. At a market rent of $4,145, the disparity with the Fair Market Rent (FMR) of $2,720 for FY 2024 highlights a significant gap that could lead to frequent tenant changes. High tenant turnover can be costly due to the time and expense required to find new tenants and prepare units for re-rental.
Vacancy exposure is another concern. With an average Days on Market (DOM) of just 17 days, it might seem that properties in this area are in high demand. However, this quick turnover also means that landlords have little control over the rental process, potentially leading to periods of vacancy if a suitable tenant is not found immediately. Vacancies can result in lost revenue, which is especially critical when dealing with lower Section 8 rents.
A third risk factor is deferred maintenance. Given the typical home value of $1,298,135 and the median income of $232,656, homeowners in this area may not always have the financial capacity to maintain their properties at optimal levels. This could lead to higher repair costs and the need for more substantial investments in property upkeep, which are often necessary but not fully covered by Section 8 payments.
However, these risks must be weighed against the high renter share of 17.3%. A high percentage of renters typically translates into a robust demand for housing vouchers, which can stabilize occupancy rates and reduce the likelihood of extended vacancies. The presence of many renters also indicates a strong rental market, which can help mitigate some of the financial risks associated with Section 8 tenancy.
In conclusion, the risks for a first-time Section 8 landlord in ZIP 20816, Bethesda, MD, are moderate. While there are challenges such as tenant turnover and maintenance costs, the high renter share provides a buffer that can offset these issues.
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.