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 | $2,860 |
| 1 Bedroom | $2,980 |
| 2 Bedrooms | $3,300 |
| 3 Bedrooms | $4,210 |
| 4 Bedrooms | $4,950 |
| 5 Bedrooms | $5,742 |
| 6 Bedrooms | $6,431 |
| 7 Bedrooms | $6,945 |
| 8 Bedrooms | $7,292 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,210 | $576,959 | 0.73% | D |
| 4BR | $4,950 | $865,466 | 0.57% | F |
| 5BR | $5,742 | $951,728 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 20841, with a median household income of $184,688, presents a unique scenario when considering the market rate for rent at $2,825. This figure represents the average cost of renting a property in the area, according to Census ACS data. The Federal Market Rent (FMR) standard for vouchers in ZIP 20841 for fiscal year 2024 is set at $3,030. This means that the voucher payment is slightly higher than the market rate, offering landlords an incentive to accept vouchers.
With only 8.9% of the 9,969 residents being renters, competition among landlords in this area is relatively low. However, the high median income suggests that many households could afford the market rate without assistance, potentially making it difficult for landlords to attract tenants who prefer or require voucher payments.
The affordability gap between the median income and the market rate rental costs indicates that most households can comfortably cover their rent expenses without relying on subsidies. For landlords, this means that while accepting vouchers might secure steady income, it could also limit the pool of potential tenants to those who qualify for assistance, possibly missing out on paying more by attracting cash-paying renters with higher incomes.
Takeaway: Landlords in ZIP 20841 should consider the benefits of both voucher and cash-pay strategies. Accepting vouchers ensures consistent income but limits tenant selection. Opting for cash-paying tenants may yield higher rents but requires navigating a competitive landscape where a significant portion of the population can afford market rates. A balanced approach, understanding the local tenant mix and preferences, will be key to maximizing occupancy and rental income.
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.