Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,580 |
| 1 Bedroom | $2,690 |
| 2 Bedrooms | $2,980 |
| 3 Bedrooms | $3,800 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
U.S. Census Bureau data (2024)
The ZIP code 20889 presents several potential challenges for landlords and small-portfolio investors considering Section 8 investments. Tenant turnover could be an issue due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $2100 set for FY 2024. This mismatch might lead to higher tenant mobility as individuals seek more affordable housing options, impacting long-term rental stability.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how quickly a property can be rented out, which is crucial for maintaining steady cash flow. Deferred maintenance poses a significant risk as well, with no available data on typical home values and median incomes. Without these figures, it's challenging to assess the financial capacity of residents to maintain their homes, leading to potential higher maintenance costs for landlords.
However, these risks must be weighed against the robust renter share of 100.0%. High renter density typically translates into a strong demand for rental properties, including those that accept Section 8 vouchers. This ensures a consistent pool of tenants, reducing the likelihood of extended vacancies and stabilizing the overall occupancy rates.
In conclusion, despite the potential risks associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 20889 suggests a moderate risk for a first-time Section 8 landlord. The availability of voucher holders should mitigate some of the risks posed by fluctuating market conditions and tenant behavior.
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.