Section 8 Fair Market Rent (FMR) for ZIP 20852 - 2027

Investment Score for ZIP 20852

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,670
1 Bedroom	$2,780
2 Bedrooms	$3,080
3 Bedrooms	$3,930
4 Bedrooms	$4,620
5 Bedrooms	$5,359
6 Bedrooms	$6,002
7 Bedrooms	$6,482
8 Bedrooms	$6,806

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,780	$259,120	1.07%	B
2BR	$3,080	$425,813	0.72%	D
3BR	$3,930	$718,157	0.55%	F
4BR	$4,620	$893,387	0.52%	F
5BR	$5,359	$1,293,758	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20852 (Rockville, DC) #### Section 8 Voucher Dynamics In ZIP code 20852, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2840 per month. This figure represents 27.8% of the median household income of $122,472, which is relatively affordable compared to the national average. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom property is $436,417, indicating that the typical rent for such units would be much higher than the FMR. Given the high cost of living in Rockville, DC, voucher holders face significant constraints in finding suitable housing. The disparity between FMR and actual rents means that landlords may be hesitant to accept vouchers due to the limited financial benefit they provide. #### Affordability & Renter Profile The population of ZIP 20852 stands at 48,180, with 56.6% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate of 93.7% suggests that the market is quite tight, with few vacant units available. Given the high median household income and the fact that 27.8% of it is allocated towards a two-bedroom unit, it is clear that the majority of renters in this ZIP code are middle to upper-middle class individuals who can afford the higher rents. For those relying on Section 8 vouchers, the situation is challenging due to the high actual rents relative to FMR. The price-to-FMR ratio of 12.8x further underscores the unaffordable nature of the market for low-income households. #### Investor Angle From an investor perspective, the ZIP code 20852 presents a mixed picture. While the rental market is robust and there is a high demand for housing, the actual rents far exceed the FMRs set by HUD. This means that landlords accepting Section 8 vouchers will likely see lower returns compared to the market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. Assuming a conservative estimate of 50% of the Zillow median price as the monthly rent ($218,208.50 / 12 = $18,184), and subtracting the FMR of $2840, the difference is $15,344 per month. This substantial gap makes it difficult for landlords to achieve positive cash flow solely based on FMRs. The investment grade for this ZIP code is moderate to low for Section 8-focused investors. The high actual rents suggest that properties are more likely to be rented out at market rates rather than FMRs, reducing the attractiveness for those looking to rely on Section 8 vouchers for their primary income source. #### Specific Actionable Insights 1. **Target Market-Specific Properties**: Investors should focus on properties that are priced closer to the FMR range. For instance, a three-bedroom unit with an FMR of $3580 might be more attractive than a two-bedroom unit with an FMR of $2840, given the higher potential rental income. This strategy could help bridge the gap between FMR and market rates, making the investment more viable. 2. **Consider Mixed-Income Developments**: Given the high percentage of renters and the tight market conditions, developing or acquiring properties that cater to both Section 8 voucher holders and market-rate tenants could be a strategic approach. This mixed-income model allows for a diversified tenant base, potentially improving cash flow and reducing vacancy rates. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 20852 is to **Skip**. The significant disparity between FMR and actual market rents, coupled with the tight occupancy rate, makes it challenging to achieve positive cash flow. Additionally, the high median household income and the large proportion of renters indicate that the market is more suited for those who can pay above FMR levels. Therefore, unless investors can find ways to bridge the financial gap through mixed-income developments or other strategies, this ZIP code is not recommended for those primarily interested in Section 8 vouchers.

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.