Section 8 Fair Market Rent (FMR) for ZIP 20817 - 2027
Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
Investment Score for ZIP 20817
B
Monthly Rent (2BR)
$3,660
Median Price (2BR)
$319,444
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 | $3,170 |
| 1 Bedroom | $3,310 |
| 2 Bedrooms | $3,660 |
| 3 Bedrooms | $4,660 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 1BR |
$3,310 |
$236,125 |
1.4% |
A |
| 2BR |
$3,660 |
$319,444 |
1.15% |
B |
| 3BR |
$4,660 |
$1,013,792 |
0.46% |
F |
| 4BR |
$5,490 |
$1,243,719 |
0.44% |
F |
| 5BR |
$6,368 |
$1,928,807 |
0.33% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$249,332
To determine if you should invest in ZIP 20817 (Bethesda, MD) for Section 8 properties, follow these steps:
- If the Fair Market Rent (FMR) of $2940 does not cover the debt service on a property valued at $1,309,872:
- No. It is not advisable to purchase a property in this area for Section 8 investment without sufficient rental income to cover expenses.
- If the FMR of $2940 covers the debt service on a property valued at $1,309,872:
- Next, compare the FMR to the Zillow Observed Rent Index (ZORI), which is $3,088.
- If ZORI is above FMR:
- It depends. The market rent being higher than the FMR suggests that there might be better opportunities outside of Section 8 for higher returns. However, consider the stability and guaranteed income that comes with Section 8 tenants.
- If ZORI is equal to or below FMR:
- Yes. There is parity between the market rent and the FMR, making Section 8 a viable option for rental income.
- After assessing the FMR against debt service and comparing it to ZORI:
- Evaluate the demand for rentals. In ZIP 20817, 18.6% of residents are renters and the average Days on Market (DOM) is 20 days.
- If the percentage of renters is high and DOM is low:
- Yes. The strong demand for rentals indicates that there will likely be a steady stream of potential tenants, including those eligible for Section 8.
- If the percentage of renters is low or DOM is high:
- No. This suggests weak demand for rentals, which could lead to vacancy issues and reduced income.
The final decision hinges on whether the FMR sufficiently covers your debt service, the relationship between FMR and market rents, and the strength of rental demand in the area. Given the data, if FMR covers debt service and demand is strong, ZIP 20817 can be a solid choice for Section 8 investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.