Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,140 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,150 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
The ZIP code 20918, located in Silver Spring, MD, within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 20918 in fiscal year 2024 is set at $2100, reflecting the government's assessment of what constitutes a reasonable rent for a typical unit. Given the lack of specific market data, this FMR serves as a reliable benchmark for rental pricing.
In a portfolio strategy, having a mix of properties that serve different purposes is key. ZIP 20918, with its stable rental market, provides a solid foundation for generating consistent cash flow. The median home value in this area is higher, at around $510K, indicating that it is not a low-cost entry point but rather a middle-tier market where the rental income aligns well with the property values. This makes it an ideal location for anchoring cash flow expectations.
The stability of the rental market in ZIP 20918 is further underscored by the fact that there are no significant fluctuations in median home values or rental prices. While there is limited data on appreciation plays and diversifiers, the consistent FMR and median home values suggest that this area will reliably support the expected rental income without requiring substantial adjustments or risking vacancies due to overpricing.
Therefore, ZIP 20918 should be considered a cash-flow anchor within a Section 8 portfolio, ensuring steady and predictable returns based on the established FMR of $2100.
Data Sources: FMR data from HUD (2027).
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.