Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,140 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,150 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
The analysis for the Section 8 program in ZIP code 20859 is based on the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 20859 as of fiscal year 2024 is set at $2100. However, the market rent data is currently unavailable, which poses a challenge for precise calculations but does not negate the importance of understanding the implications of this gap.
In the context of Unknown, DC, where the percentage of renters is unknown and the median home value and median income figures are also unspecified, landlords must consider the impact of housing vouchers on their investment yields. When the FMR exceeds the market rent, it means that voucher tenants can effectively cover more than what the market demands, turning this into a yield play for landlords. This scenario allows owners to potentially secure higher returns compared to the open market, as they receive government-backed payments that exceed typical rental income.
Conversely, if the FMR is lower than the market rent, which is suggested by the lack of market rent data being available and assuming market rents are typically higher, landlords will face the cost of renting to voucher tenants at rates below what the open market would offer. This situation reduces potential rental income and may require adjustments in property management strategies to maintain profitability.
The exact dollar amount and percentage gap cannot be calculated due to the missing market rent figure. Nonetheless, the principle remains clear: landlords should evaluate whether the guaranteed income from Section 8 vouchers outweighs the risk of renting below market rates. In an environment where the specifics of the rental market and local economic conditions are unclear, the stability provided by the Section 8 program can be a crucial factor in making investment decisions.
Data Sources: FMR data from HUD (2027).
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.