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 | $2,090 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,070 | $570,838 | 0.54% | F |
| 4BR | $3,620 | $702,549 | 0.52% | F |
| 5BR | $4,199 | $782,191 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 20905 is situated in a high-income, suburban neighborhood in Fairfax County, Virginia, known for its affluent living conditions and excellent public services. With a total population of 19,004, it's predominantly a homeowners' market, where only 12.9% of residents are renters. The median household income in this area stands at a robust $159,740, reflecting the financial stability of its inhabitants. This wealth is further evidenced by the median home value of $686,837, which places it among the more expensive residential areas in the region.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 20905 as of the fiscal year 2024 is set at $2,070. In contrast, the market rent, as measured by Zillow's ZORI index, is $2,350. This gap highlights a potential opportunity for landlords who can manage properties efficiently to capture additional revenue above the voucher rates.
The question then arises: Is this environment suitable for a hands-off voucher operator or does it demand a hands-on value-add buyer? Given the high median income and the significant disparity between the FMR and market rent, the ZIP 20905 appears better suited for a hands-on approach. Landlords and investors who are willing to improve property values through renovations or upgrades can leverage the higher market rents to achieve greater returns. While hands-off operators might find success with the current FMR, the potential for increased profitability suggests that a more active strategy could be more rewarding in this economically vibrant area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.