Section 8 Fair Market Rent (FMR) for ZIP 20910 - 2027

Investment Score for ZIP 20910

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	$2,420
1 Bedroom	$2,530
2 Bedrooms	$2,800
3 Bedrooms	$3,570
4 Bedrooms	$4,200
5 Bedrooms	$4,872
6 Bedrooms	$5,457
7 Bedrooms	$5,894
8 Bedrooms	$6,189

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	$2,530	$251,988	1%	B
2BR	$2,800	$361,382	0.77%	D
3BR	$3,570	$721,172	0.5%	F
4BR	$4,200	$839,192	0.5%	F
5BR	$4,872	$1,001,014	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20910 (Silver Spring, DC) #### Section 8 Voucher Dynamics In ZIP code 20910, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,580 per month by HUD for 2026. This figure represents 27.6% of the median household income of $112,134, which is a relatively high percentage compared to typical affordability standards. The Zillow median price for a two-bedroom home in this area is $372,101, indicating a significant disparity between the cost of housing and the FMR. The price-to-FMR ratio for a two-bedroom unit is approximately 12.0x, meaning that the median home price is about twelve times the monthly rent allowed under the Section 8 program. This high ratio suggests that actual rental prices in the area could be significantly higher than the FMR. For instance, if we assume that the average rental price aligns closely with the Zillow median, then a two-bedroom apartment might rent for around $3,100 per month ($372,101 / 12 months). This would place it well above the $2,580 FMR, creating a constraint for Section 8 voucher holders who can only afford to pay up to the FMR amount. #### Affordability & Renter Profile ZIP code 20910 has a population of 45,943, with 64.5% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 94.1%, suggesting that the market is tight and there is little excess supply. Given the high percentage of renters and the near-full occupancy, it is likely that competition for rental units is intense, particularly among those who rely on government assistance like Section 8 vouchers. The median household income of $112,134 is relatively high, but the large proportion of renters indicates that many residents may struggle to afford homeownership. The FMR for a two-bedroom unit at $2,580 is a substantial portion of the median income, making it challenging for low-income households to find affordable rentals without assistance. #### Investor Angle From an investor perspective, the key question is whether properties in ZIP code 20910 can generate positive cash flow when rented at the FMR. To evaluate this, let's consider the potential rental income and expenses: - **Two-Bedroom Rental Income**: At $2,580 per month, the annual rental income would be $30,960. - **Expenses**: Typical expenses include property taxes, insurance, maintenance, and mortgage payments. Assuming a conservative estimate where these expenses total 50% of the rental income, the net annual income would be $15,480. Given the Zillow median price of $372,101, the potential cash-on-cash return would be calculated as follows: \[ \text{Cash-on-Cash Return} = \left( \frac{\text{Net Annual Income}}{\text{Total Investment}} \right) \times 100 \] Assuming a 20% down payment, the total investment would be $74,420.20 (20% of $372,101). Therefore, the cash-on-cash return would be: \[ \left( \frac{15,480}{74,420.20} \right) \times 100 = 20.8\% \] This return is quite attractive, especially considering the tight market conditions and high occupancy rates. However, the challenge lies in finding landlords willing to accept Section 8 vouchers due to the stigma associated with them and the perception of increased administrative burden. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high FMR for two-bedroom apartments and the median household income, two-bedroom units are most likely to attract tenants who need Section 8 assistance. These units have a rental ceiling of $2,580, which is a significant portion of the median income, making them highly sought after. 2. **Negotiate with Landlords**: Despite the high Zillow median price, some landlords may still be willing to accept Section 8 vouchers if they are offered a slightly higher rent than the FMR. Investors should consider negotiating with landlords to secure a higher rent while still staying within the bounds of what voucher holders can afford. 3. **Utilize Local Real Estate Agents**: Engage local real estate agents who specialize in Section 8 properties. They can provide valuable insights into the market and help navigate the complexities of finding and securing properties that will accept vouchers. #### Bottom Line For Section 8-focused investors, ZIP code 20910 presents a mixed picture. On one hand, the high median household income and tight rental market suggest strong demand for rental properties. On the other hand, the significant gap between the Zillow median price and the FMR poses challenges in finding properties that are willing to accept vouchers. Despite these challenges, the potential for positive cash flow and the strong demand for affordable housing make this ZIP code a candidate for investment. However, investors must be prepared to work diligently to overcome landlord reluctance and ensure that their properties are properly managed to meet the needs of voucher holders. **Recommendation**: **Hold**. While the market offers opportunities, the high costs and potential difficulties in securing properties that accept Section 8 vouchers mean that investors should proceed cautiously and only after thorough due diligence.

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.