Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,140 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,150 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
The ZIP code 20827 in the Washington-Arlington-Alexandria County, DC-VA-MD HUD Metro FMR Area, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for this area is set at $2100 for fiscal year 2024. However, the lack of specific market rent data for comparison means that we must rely on the FMR as a benchmark for assessing the viability of voucher tenants.
Voucher tenants in ZIP 20827 will likely cashflow at the FMR level, given that the HUD FMR is designed to cover the cost of rental housing at the 40th percentile of the local market. This suggests that properties renting at or below $2100 should generate positive cash flow when subsidized by the Section 8 program. However, the absence of precise market rent figures makes it difficult to determine if there's a significant margin between the FMR and actual market rents, which would indicate how easily cashflow can be achieved with standard units versus premium ones.
The median home value in the area is not specified, but assuming typical values for the broader Washington D.C. metropolitan region, the rent-to-price ratio would suggest that renting is more economical than buying. This ratio helps investors understand the relative attractiveness of renting versus owning, which can influence demand for rental properties among non-voucher tenants.
Average Days on Market (DOM) and price cut percentages are not available, but these metrics are crucial for understanding the broader rental market dynamics. If the DOM is low and price cuts are minimal, it indicates a strong rental market where investors can expect steady occupancy and limited need for rent concessions. Conversely, high DOM and frequent price cuts suggest a more competitive market, which could impact the ability to maintain full occupancy and positive cash flow.
The strongest investor angle in ZIP 20827 appears to be cashflow, given the alignment of voucher amounts with the HUD FMR. Investors should focus on acquiring properties that can be rented at or below $2100 to maximize their financial returns through the Section 8 program.
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.