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 | $2,200 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,240 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,540 | $318,470 | 0.8% | D |
| 3BR | $3,240 | $418,281 | 0.77% | D |
| 4BR | $3,810 | $663,167 | 0.57% | F |
| 5BR | $4,420 | $770,211 | 0.57% | F |
U.S. Census Bureau data (2024)
ZIP code 20876, located in Germantown, MD, is part of the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. The Fair Market Rent (FMR) for this ZIP is set at $2180 for fiscal year 2024, which is higher than the average market rent of $2,027. This indicates that the rental market in 20876 is slightly above the typical level for the broader metro area.
The median home value in ZIP 20876 stands at $484,224, which is likely lower than the overall metro average. This suggests that Germantown offers a more affordable housing option compared to some other areas within the larger Washington-Arlington-Alexandria region.
A significant portion of residents in Germantown are renters, with a 32.6% renter share. This is notably higher than the average for the entire metro area, which typically has a lower percentage of renters. The combination of a relatively high renter share and below-average home values can signal a potential sweet spot for Section 8 properties. Landlords and small-portfolio investors should consider this ZIP as it may offer opportunities where the demand for affordable rentals meets a slightly lower barrier to entry for property acquisition.
To conclude, ZIP 20876 appears to be a value pocket within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. It provides an environment where the cost of renting is somewhat higher than the market rent but still offers a more accessible price point for purchasing properties compared to the metro-wide average. This makes it particularly attractive for those interested in the Section 8 housing program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.