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 | $1,130 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $338,118 | 0.49% | F |
| 4BR | $1,970 | $505,746 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 21727 presents a clear opportunity for landlords and small-portfolio investors due to the favorable financial metrics associated with the area. The HUD Fair Market Rent (FMR) for ZIP 21727 is set at $1060 for fiscal year 2024. This figure is significantly higher than the average market rent of $775 reported by the Census ACS, indicating that voucher tenants can indeed generate positive cash flow at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which stands at $371,708. Using this figure, we can derive the rent-to-price ratio. With an average market rent of $775, the annual rental income would be approximately $9,300. This yields a rent-to-price ratio of about 2.5%, suggesting that the property values are relatively high compared to the rents being paid. However, when factoring in the HUD FMR of $1060, the annual rental income increases to around $12,720, resulting in a more competitive rent-to-price ratio of approximately 3.4%. This improved ratio makes it more attractive for investors seeking steady cash flow from their properties.
In terms of the days on market (DOM) and price-cut share, these metrics are not applicable for the rental market but are relevant for understanding the buy-versus-rent dynamics. Since the data indicates these figures are not available, we must rely on the other key indicators to assess the overall market health. Given the strong discrepancy between the HUD FMR and the market rent, it's evident that voucher tenants can cash flow at the HUD FMR rate without needing to seek premium units. This is a significant advantage for landlords who can leverage the higher payment standard to cover their costs and generate profit.
The strongest investor angle in ZIP 21727 is cash flow. With the HUD FMR well above the current market rent, landlords can expect a reliable and consistent source of income from voucher tenants, making this a stable and profitable investment choice.
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.