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 |
U.S. Census Bureau data (2024)
To integrate ZIP 20862 into a Section 8 portfolio strategy, one must first understand its characteristics within the broader context of the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. ZIP 20862 stands out primarily as a cash-flow anchor. This classification is based on the significant gap between the Fair Market Rent (FMR) for FY 2024, which is set at $2530, and the lack of available market rental rates, indicating that the actual market rates could be higher.
The median home value in ZIP 20862 is notably high at $922,714, suggesting a strong demand for housing in the area. However, the absence of market-specific rental data means that landlords can potentially charge above the FMR without significantly impacting their occupancy rates, thus securing steady cash flow. The high median income of $189,667 further supports this strategy, as it indicates that residents have the financial capability to afford higher rents.
Despite the lack of data on price-cut share and days on market (DOM), which would typically inform an appreciation play strategy, the high median income and median home value suggest that property values in ZIP 20862 are likely stable or appreciating. Therefore, relying on it as a cash-flow anchor is prudent. Landlords should focus on maintaining properties to command rents close to the upper limit of what the market will bear, while still being within the acceptable range for Section 8 vouchers.
ZIP 20862 does not serve well as a diversifier due to its low renter share at 0.0%. This statistic implies that homeownership is predominant in the area, reducing the pool of potential renters and making it less suitable for broadening a portfolio's geographic or demographic reach.
In conclusion, ZIP 20862 should be considered a cash-flow anchor within a Section 8 portfolio strategy. Its high median income and home values support the ability to maintain consistent and relatively high rental income, making it a reliable component of a landlord's investment mix.
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.