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 | $1,990 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,450 |
| 5 Bedrooms | $4,002 |
| 6 Bedrooms | $4,482 |
| 7 Bedrooms | $4,841 |
| 8 Bedrooms | $5,083 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,300 | $247,652 | 0.93% | C |
| 3BR | $2,930 | $560,244 | 0.52% | F |
| 4BR | $3,450 | $699,212 | 0.49% | F |
| 5BR | $4,002 | $761,081 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 20853 in Rockville, MD, presents a unique balance between yield and stability for Section 8 real-estate investors. With a Fair Market Rent (FMR) of $2,110 for fiscal year 2024, it stands above the local market rent of $1,861, indicating a higher potential rental income for properties participating in the Section 8 program. This is further amplified when considering the average home value in the area, which is $636,782, suggesting that the rental yield is relatively strong compared to the property values.
On the stability axis, the metrics paint a picture of a moderately stable market. The ZIP code has a 14.0% rate of renters, which is not exceptionally high but does indicate a reasonable demand for rental housing. Additionally, the days on market (DOM) figure of 16 days shows that units are moving quickly once listed, which can be an indicator of a healthy rental market. However, the median household income of $159,080 suggests that many residents may prefer homeownership over renting, potentially affecting the long-term stability of the rental market.
Given these factors, ZIP 20853 is best classified as a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher FMR compared to the market rent provides a solid cash flow opportunity for landlords, especially those willing to participate in the Section 8 program. Meanwhile, the relatively low percentage of renters and the high median income imply that while there is demand for rental housing, it may not be as volatile or as high-turnover as in areas with a larger proportion of renters or lower incomes.
To summarize, the $2,110 FMR for Section 8 properties is significantly higher than the $1,861 market rent, providing a good yield. The 14.0% renters rate and $159,080 median income suggest a moderate level of stability, with the quick turnover indicated by the 16-day DOM adding to the confidence in maintaining consistent cash flows.
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.