Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,560 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 21774 include higher tenant turnover due to the market rent being slightly above the Fair Market Rent (FMR) set at $2,522 compared to the $2,500 FMR for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, which may increase management costs and operational challenges.
Vacancy exposure is another concern, with an average Days on Market (DOM) of 28 days indicating that properties may remain unoccupied longer than desired. Landlords should prepare for periods when their units might not generate rental income, potentially affecting cash flow and profitability.
Deferred maintenance poses a significant risk, especially considering the typical home value of $604,026 and a median household income of $171,103. The financial burden of maintaining property standards can be substantial, particularly if the income does not cover the costs associated with keeping the property up to code. Landlords must budget adequately for repairs and upgrades to avoid penalties and ensure compliance with Section 8 requirements.
Despite these risks, the 6.5% renter share in ZIP 21774 suggests a high concentration of renters, which typically correlates with greater demand for housing vouchers. This demand can provide a stable tenant pool, reducing the likelihood of prolonged vacancies and ensuring consistent rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.