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 | $2,050 |
| 1 Bedroom | $2,140 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $3,020 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,020 | $543,818 | 0.56% | F |
| 4BR | $3,560 | $558,013 | 0.64% | D |
| 5BR | $4,130 | $599,242 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 20851 presents an interesting scenario for both renters and landlords. With a median income of $126,411, households in this area have a relatively high earning potential. However, when considering the market rate for rent, which stands at $2,871 per month (ZORI), the financial landscape becomes more complex.
The voucher payment standard for this ZIP code, set at $2,080 for fiscal year 2024 (FMR), offers a stark contrast to the market rate. This means that renters relying on vouchers face a significant affordability gap, having to pay up to $791 less than the market rate for comparable housing. For those not using vouchers, the disparity between their income and the ZORI suggests that while they can afford the higher rents, it represents a substantial portion of their monthly budget.
In ZIP 20851, where 42.5% of the 14,946 residents are renters, the competition among landlords is influenced heavily by the affordability gap. Voucher holders may prefer properties that accept their assistance due to the lower cost, whereas other renters might seek out deals that are closer to the market rate but still within their budget constraints.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of tenants who are less likely to default on rent payments due to financial stress. However, those opting for cash-paying tenants could potentially command higher rents, reflecting the willingness of higher-income households to pay market rates. Landlords should consider diversifying their rental offerings to cater to both groups, ensuring a balanced portfolio that maximizes occupancy and revenue stability.
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.