Section 8 Fair Market Rent (FMR) for ZIP 20904 - 2027

Investment Score for ZIP 20904

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	$2,000
1 Bedroom	$2,090
2 Bedrooms	$2,310
3 Bedrooms	$2,940
4 Bedrooms	$3,470
5 Bedrooms	$4,025
6 Bedrooms	$4,508
7 Bedrooms	$4,869
8 Bedrooms	$5,112

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,090	$192,244	1.09%	B
2BR	$2,310	$291,229	0.79%	D
3BR	$2,940	$485,119	0.61%	D
4BR	$3,470	$643,666	0.54%	F
5BR	$4,025	$716,996	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20904 (Silver Spring, DC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 20904, as set by HUD for 2026, are as follows: - 0BR: $1880 - 1BR: $1940 - 2BR: $2160 - 3BR: $2730 - 4BR: $3200 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, comparing these figures to actual rental rates in the area reveals significant constraints for voucher holders. For instance, the FMR for a 2BR unit is $2160, which represents only 27.0% of the median household income in the area ($96,025). This suggests that even at the FMR rate, 2BR units are still quite expensive relative to the average income. #### Affordability & Renter Profile ZIP code 20904 has a population of 58,646, with 51.1% being renters. The occupancy rate is high at 95.3%, indicating a tight rental market. Given the median household income of $96,025, it’s clear that many residents are middle-class professionals who can afford higher rents. However, the significant percentage of renters suggests that there is also a substantial portion of the population that relies on affordable housing options. The Zillow median price for a 2BR home is $297,530, which is 11.5 times the FMR for a 2BR unit. This high price-to-FMR ratio indicates that the rental market is considerably more expensive than what is covered by the Section 8 vouchers. As a result, voucher holders face severe limitations in finding suitable housing within their budget. They are likely restricted to lower-quality or smaller units that fit within their FMR caps. #### Investor Angle From an investor perspective, the ZIP code 20904 presents both opportunities and challenges. The high occupancy rate and significant renter population suggest strong demand for rental properties. However, the tight market and high price-to-FMR ratio mean that properties rented to Section 8 voucher holders may struggle to generate positive cash flow. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments associated with rental properties. Assuming a property value of $297,530 and a mortgage rate of around 5%, the monthly mortgage payment would be approximately $1450. Adding typical operating expenses such as property taxes, insurance, maintenance, and utilities, the total monthly cost could easily exceed the FMR cap for most units. For example, a 2BR unit with a mortgage payment of $1450 and additional operating expenses of $700 would have a total monthly cost of $2150, just under the FMR cap of $2160. Any increase in costs would make the property unprofitable for Section 8 tenants. Given these dynamics, the investment grade for Section 8-focused properties in ZIP code 20904 is moderate to low. While there is demand, the high costs and limited ability to raise rents make it challenging to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on acquiring 0BR, 1BR, or 2BR units, which are more likely to fit within the FMR limits. For instance, a 1BR unit with an FMR of $1940 might be more feasible compared to a 3BR or 4BR unit. 2. **Consider Lower-Cost Properties**: Investors should look for properties that are below the median price of $297,530. A property valued at $250,000 would have a lower mortgage payment, potentially allowing for positive cash flow when rented to Section 8 voucher holders. 3. **Explore Subsidies and Programs**: To improve profitability, investors should explore government subsidies and programs that provide additional financial support for landlords renting to Section 8 tenants. These programs can help offset the gap between FMR and actual operating costs. #### Bottom Line For Section 8-focused investors, ZIP code 20904 presents a challenging environment due to the high costs and tight rental market. The recommendation is to **Skip** this ZIP for now unless you can find properties that are significantly below the median price or have unique characteristics that allow them to be rented profitably within the FMR limits. If you do decide to invest, focus on smaller units and explore additional financial support programs to ensure positive cash flow.

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.