Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,630 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 20842 does not work favorably for landlords or small-portfolio investors. The Fair Market Rent (FMR) set at $1,550 for fiscal year 2024 is below the reported market rent of $1,777 according to Census ACS data. This discrepancy means that tenants eligible for Section 8 might struggle to cover the actual market rent, leaving landlords with a shortfall.
Acquisition in this area is challenging due to the high median home value of $750,464. With no data available on days on market (DOM) or the percentage of homes needing price cuts to sell, it's difficult to assess how quickly properties can be acquired or at what discount. However, the high median home value suggests that purchasing properties might be expensive and could require significant capital investment.
Tenant demand is present but limited by the size of the population. With only 2,369 residents in ZIP 20842 and a renter share of 17.6%, there are approximately 417 potential renters. This number is relatively low, which could mean competition among landlords is high, and finding suitable tenants might be more challenging compared to areas with larger populations and higher renter shares.
In conclusion, ZIP 20842 presents a scenario where the rent math is unfavorable, acquisitions are costly, and tenant demand is limited. Landlords and small-portfolio investors should carefully consider these factors before investing in this area. The combination of low FMRs relative to market rents and a small pool of potential tenants makes it less attractive for those looking to maximize returns through Section 8 participation.
Data Sources: FMR data from HUD (2027). 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.