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 | $2,150 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,720 |
| 5 Bedrooms | $4,315 |
| 6 Bedrooms | $4,833 |
| 7 Bedrooms | $5,220 |
| 8 Bedrooms | $5,481 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,160 | $435,996 | 0.72% | D |
| 4BR | $3,720 | $797,505 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 20837, located within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $2250 per month for FY 2024, which is significantly higher than the average market rent of $1,996 as reported by the Census ACS. This discrepancy means that voucher tenants can provide positive cash flow to landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in the area, which stands at $737,597. With an average market rent of $1,996, the rent-to-price ratio is approximately 0.27%, indicating that rental income alone is unlikely to cover the total cost of homeownership. However, this ratio does suggest a strong demand for rentals, especially those that qualify for Section 8 vouchers.
The dynamics between renting and buying in this market are important to note. While specific data on the median Days on Market (DOM) and the percentage of homes that have been discounted are not available, the fact that voucher rents exceed market rates implies that voucher tenants are likely to be highly sought after. This scenario can help stabilize occupancy rates and reduce vacancy periods, which are critical factors for small-portfolio investors.
The strongest angle for investors in this market is cash flow. Given the high FMR compared to the actual market rent, properties in ZIP 20837 can generate substantial monthly income when leased to Section 8 tenants. This makes it an attractive option for those looking to build a steady stream of rental revenue without the need for premium units. Additionally, the robust demand for rentals supports long-term stability, which is another key benefit for investors.
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.