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 | $2,330 |
| 1 Bedroom | $2,430 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,040 |
| 5 Bedrooms | $4,686 |
| 6 Bedrooms | $5,248 |
| 7 Bedrooms | $5,668 |
| 8 Bedrooms | $5,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,690 | $382,224 | 0.7% | D |
| 3BR | $3,430 | $426,134 | 0.8% | C |
| 4BR | $4,040 | $623,264 | 0.65% | D |
| 5BR | $4,686 | $825,138 | 0.57% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 20866, Burtonsville, MD, suggests a balanced market with moderate pricing power for the next 12-24 months. The median home value stands at $468,435, indicating a stable residential market that has not seen significant fluctuations recently. While the percentage of listings that have been reduced and the median days on market (DOM) are currently unavailable, this absence signals a market where homes are selling at or close to their asking price, which supports the idea that sellers maintain some pricing leverage.
On the rental side, the Fair Market Rent (FMR) for ZIP 20866 in fiscal year 2024 is projected to be $2,180, whereas the current Zillow Observed Rent Index (ZORI) stands at $2,286. This slight discrepancy between the FMR and the actual market rent suggests that landlords have a modest advantage in terms of rental pricing, but it also indicates a market that is closely watched and regulated, which limits the potential for significant rent increases.
For long-term hold investors, the setup in Burtonsville implies a realistic appreciation thesis, albeit one that is constrained by broader economic factors. Given the steady median home value and the current rental dynamics, appreciation is likely to remain within historical norms. Investors should expect a gradual increase in property values, driven by inflation and steady population growth, rather than speculative bubbles or rapid spikes.
The data points to a scenario where both homeowners and landlords can maintain their current positions without significant adjustments. However, the lack of recent reductions in listing prices and the unavailability of DOM data hint at a market that could be sensitive to changes in interest rates or broader economic conditions. Long-term investors should prepare for periods of stability punctuated by occasional volatility.
In summary, ZIP 20866 presents a market where pricing power is present but limited. Homeowners and landlords can expect modest gains, particularly in the rental sector, but should remain cautious about overpricing properties given the regulatory environment and potential economic shifts.
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.