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 | $1,200 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $363,866 | 0.49% | F |
| 4BR | $2,090 | $524,780 | 0.4% | F |
U.S. Census Bureau data (2024)
14.9% of the population in ZIP code 21716 are renters, indicating a moderate demand for rental properties in the area. The $1120 Fair Market Rent (FMR) for zip code 21716 for fiscal year 2024 is lower than the $1,195 market rent reported by the Census Bureau's American Community Survey, suggesting that landlords can potentially offer competitive rents while still qualifying for Section 8 subsidies. With a median home value of $415,538, it's clear that homeownership is a significant factor in the local economy, though the gap between FMR and market rent indicates that rental housing remains an essential part of the housing landscape.
The median income of $109,382 provides insight into the financial health of the area's residents. However, since the average market rent is nearly 11% of this median income, it underscores the importance of affordable rental options for many families. The N/A-day DOM (Days on Market) statistic implies that properties in this area are typically sold quickly once they come onto the market, which could indicate strong interest from buyers, including those looking to add rental properties to their portfolio.
Furthermore, the 0.2% price-cut share suggests that property values in 21716 are relatively stable, with few listings needing to be discounted to sell. This stability can be reassuring for investors considering long-term investments in the area. Given these figures, the potential for success in Section 8 housing in ZIP 21716 is promising, especially for those who can offer units at or below the $1120 FMR threshold.
Section 8 verdict: A viable investment opportunity, particularly for landlords offering units within the $1120 FMR limit.
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.