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 | $2,720 |
| 1 Bedroom | $2,840 |
| 2 Bedrooms | $3,140 |
| 3 Bedrooms | $4,000 |
| 4 Bedrooms | $4,710 |
| 5 Bedrooms | $5,464 |
| 6 Bedrooms | $6,120 |
| 7 Bedrooms | $6,610 |
| 8 Bedrooms | $6,941 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,000 | $540,536 | 0.74% | D |
| 4BR | $4,710 | $697,669 | 0.68% | D |
| 5BR | $5,464 | $923,296 | 0.59% | F |
U.S. Census Bureau data (2024)
ZIP code 21704, located within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, exhibits characteristics that place it firmly within the premium sub-market segment of the broader metropolitan area. This assessment is based on several key metrics provided.
The Fair Market Rent (FMR) for ZIP 21704 stands at $2,630 for fiscal year 2024, which is notably higher than the average FMR across the entire metro area. Additionally, the market rent at $2,355 also exceeds typical levels, indicating strong demand and a willingness to pay higher rents in this area.
The median home value of $657,529 in ZIP 21704 is consistent with the premium nature of the neighborhood. This figure reflects the overall high cost of living and property values within the ZIP code, aligning well with the expectations for a premium sub-market within the larger Washington metropolitan region.
However, the renter share at 18.0% is lower compared to what might be expected in a premium sub-market. Typically, premium markets have a higher proportion of renters due to the high cost of homeownership. The lower renter share could suggest a more balanced mix between homeowners and renters, or it could indicate that homeownership remains accessible despite the high median home value.
Despite the lower-than-average renter share, the combination of high FMR and market rent with a relatively high median home value suggests that ZIP 21704 is not a sweet spot for Section 8 investors seeking areas with a high concentration of renters and lower home values. Instead, it represents a premium sub-market where rental properties command higher prices, reflecting the overall economic conditions and desirability of the area.
In summary, ZIP 21704 is best categorized as a premium sub-market within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, characterized by high rents and property values. While it does not fit the profile of a value pocket due to its elevated costs, it still offers opportunities for landlords and investors willing to target higher-income tenants or those who can afford the premium prices associated with this ZIP code.
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.