Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The ZIP code 20899 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant risk, as the market rent stands at $788 compared to the Federal Market Rent (FMR) of $1060 for fiscal year 2024. This disparity can lead to higher turnover rates since tenants who rely on vouchers may find it difficult to afford the difference between the market rent and their subsidy amount. Additionally, vacancy exposure is a concern due to the lack of available data on the average days on market (DOM), which suggests that there might be periods where properties remain unoccupied, leading to lost rental income.
Deferred maintenance is another issue, as the typical home value is not provided, but the median household income is $24,417. This figure indicates that many residents may struggle to cover the costs of necessary repairs and upgrades, potentially leading to substandard living conditions if landlords do not invest in regular maintenance. The absence of a typical home value also complicates the assessment of property values and potential appreciation, which are crucial factors for long-term investment planning.
However, these risks must be weighed against the strong demand for rental housing in the area. With a 100.0% renter share, the likelihood of finding tenants, especially those with Section 8 vouchers, is high. This dense rental market typically translates into robust voucher demand, ensuring a steady stream of qualified applicants. Landlords can leverage this high renter concentration to mitigate the risk of vacancies and ensure consistent cash flow.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 20899 is moderate. While there are notable risks such as tenant turnover and deferred maintenance, the high renter share provides a solid foundation for attracting tenants and maintaining occupancy levels.
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.