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 | $2,070 |
| 1 Bedroom | $2,160 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,160 | $161,836 | 1.33% | A |
| 2BR | $2,390 | $246,402 | 0.97% | C |
| 3BR | $3,050 | $458,279 | 0.67% | D |
| 4BR | $3,590 | $610,024 | 0.59% | F |
| 5BR | $4,164 | $702,808 | 0.59% | F |
U.S. Census Bureau data (2024)
Silver Spring, specifically ZIP 20906, is defined by a robust transit-oriented character and proximity to major economic hubs. Formerly a car-oriented suburb, the area has evolved into a walkable city with an active downtown, offering amenities that appeal to diverse demographics. Infrastructure like the Paul S. Sarbanes Transit Center supports this accessibility, and the area is poised for further enhancements with the upcoming Purple Line light rail, which aims to better connect suburban downtowns and improve commutes.
Investors must weigh the HUD Fair Market Rent against current leasing performance. The FY2026 FMR for a 2-bedroom unit is set at $2,190, while the current market rent (Zillow ZORI) sits at $1,909, creating a delta of $281 in potential favorability for voucher holders. The median home value is $447,328, and properties are moving moderately, with a median of 62 days on market. With a median 2BR sale price of $248,765, entry prices remain accessible compared to the metro area.
The tenant pool is bolstered by a solid economic foundation; the median household income is $97,521, and the renter share is 33.6%, indicating a healthy mix of owners and renters. This income level supports housing stability, while the diverse neighborhoods surrounding transit corridors suggest sustained demand for rental units. As transit accessibility improves through Purple Line development, areas like 20906 may see increased real estate demand from renters prioritizing commute efficiency.
The Verdict: Silver Spring 20906 presents a viable Section 8 strategy anchored in cash flow and appreciation potential. The $281 gap between the 2BR FMR ($2,190) and market rent ($1,909) allows landlords to maximize guaranteed payments, while the Purple Line transit improvements drive long-term appreciation. The relatively high median income and moderate renter share further reduce vacancy risk, making this a sound play for stability.
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.