Section 8 Fair Market Rent (FMR) for ZIP 20872 - 2027

Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

Investment Score for ZIP 20872

D
Monthly Rent (2BR)
$2,120
Median Price (2BR)
$279,834
1% Rule
0.76%
Annual Yield
9.09%

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$1,840
1 Bedroom$1,920
2 Bedrooms$2,120
3 Bedrooms$2,700
4 Bedrooms$3,180
5 Bedrooms$3,689
6 Bedrooms$4,132
7 Bedrooms$4,463
8 Bedrooms$4,686

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,120 $279,834 0.76% D
3BR $2,700 $481,780 0.56% F
4BR $3,180 $639,790 0.5% F
5BR $3,689 $801,549 0.46% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
13,983
Median Household Income
$141,050
Housing Units
4,826
Renter Percentage
11.1%
Occupancy Rate
96.5%
Renter Occupied
518

The ZIP code 20872, located in Damascus, Maryland, stands out within Montgomery County due to several key characteristics. With a population of 13,983 residents, it has a relatively low rental rate at 11.1%, indicating that most residents own their homes. The median income for households in this area is $141,050, which is notably higher than the national average, suggesting a prosperous community. Additionally, the median home value is $550,641, reflecting the high cost of living and property values typical of the region.

When considering the economics of Section 8 vouchers in ZIP 20872, the Fair Market Rent (FMR) for fiscal year 2024 is set at $1,710. This figure is slightly below the Census American Community Survey's reported market rent of $1,809. This discrepancy means that landlords accepting Section 8 vouchers in this area can expect to receive a rent subsidy that is marginally lower than the average market rent. However, the high median income suggests that tenants might have additional resources to cover the difference, making Section 8 properties still attractive to potential renters.

Evaluating the data signature of ZIP 20872, it reads as stable. The relatively high median income and home values indicate a well-established and financially secure community. The low percentage of renters also points towards a preference for homeownership, which typically correlates with a stable housing market. Despite the modest gap between the FMR and market rents, the overall economic indicators suggest a consistent environment where Section 8 participation remains viable but not necessarily the primary choice for landlords.

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.