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 | $2,030 |
| 1 Bedroom | $2,120 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,980 | $476,034 | 0.63% | D |
| 4BR | $3,510 | $593,054 | 0.59% | F |
| 5BR | $4,072 | $617,026 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 20903 reveals a unique balance between yield potential and market stability. With a Fair Market Rent (FMR) of $1,940 for the fiscal year 2024, compared to a market rent of $1,825, the area presents a modest yield advantage for landlords and investors. This indicates that properties can command rents slightly above the average market rate, enhancing profitability.
However, the median home value of $520,904 suggests a relatively expensive housing market. Despite this, the rental market remains robust, with 58.8% of residents being renters. This high percentage of renters supports a strong demand for rental properties, which is beneficial for steady cash flow.
The lack of data on days on market (DOM) makes it challenging to assess the speed at which rental properties turn over. However, the median household income of $80,768 provides insight into the economic stability of the area. This figure implies that most residents have the financial means to sustain regular rental payments, contributing to the overall stability of the rental market.
Based on these figures, ZIP 20903 does not fit the profile of a high-yield/low-stability flip-style market. Instead, it leans towards a steady-cashflow zone due to the significant percentage of renters and the apparent ability of residents to maintain consistent rental payments. The modest yield advantage, while present, is overshadowed by the strong fundamentals supporting long-term investment stability.
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.