Location: Washington-Arlington-Alexandria, DC | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $2,230 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,580 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,290 | $638,940 | 0.51% | F |
| 4BR | $3,870 | $821,398 | 0.47% | F |
| 5BR | $4,489 | $1,061,581 | 0.42% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 20833 does not align favorably with the financial metrics provided. The Fair Market Rent (FMR) set at $2460 for fiscal year 2024 contrasts sharply with the reported market rent of $2,074 based on Census ACS data. This discrepancy suggests that landlords may struggle to justify higher rents based on current market conditions.
Regarding acquisition affordability, the median home value stands at $824,265. Without specific days on market (DOM) or the percentage of homes requiring price cuts, it's challenging to provide a definitive assessment of the ease of acquiring properties at or below this median. However, the high median value implies that purchasing homes could be costly, potentially limiting opportunities for small-portfolio investors seeking affordable entry points.
Tenant demand in ZIP 20833 is relatively low, given a population of 7,860 and only a 5.2% share of renters. This indicates that there might not be a significant pool of potential tenants willing to pay the FMR or even the market rent. Landlords should expect a competitive environment where attracting and retaining tenants could require offering amenities or services above and beyond what is typical.
In conclusion, ZIP 20833 presents a challenging investment scenario for landlords and small-portfolio investors. The disparity between FMR and actual market rent suggests that achieving desired rental income levels may be difficult. Additionally, the high median home value complicates property acquisitions, while the limited tenant demand adds another layer of complexity. These factors collectively indicate that investing in this area requires careful consideration and possibly a strategy that differentiates from standard approaches to ensure profitability and occupancy rates.
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.