Location: Washington-Arlington-Alexandria, DC | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $1,210 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,960 | $457,984 | 0.43% | F |
| 4BR | $2,190 | $563,472 | 0.39% | F |
| 5BR | $2,540 | $647,196 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP 21776, located within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, serves as a cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 21776 in fiscal year 2024 is set at $1,670, which is significantly higher than the market rent of $1,297. This $373 spread indicates that landlords participating in the Section 8 program can expect a more stable and reliable source of rental income compared to market rates.
The median home value in ZIP 21776 stands at $480,659, reflecting a high-cost area where owning property can be expensive. However, the guaranteed income from the Section 8 program, coupled with the higher FMR, provides a cushion against potential financial downturns and ensures steady cash flow. The FMR is designed to cover the cost of housing in areas with varying levels of affordability, making it an effective tool for landlords in high-cost regions.
While ZIP 21776 does not present a significant opportunity for appreciation plays due to the lack of data on price-cut shares and days on market (DOM), it still offers a solid investment option through its role as a cash-flow anchor. Additionally, the area has a 6.8% renter share, indicating a relatively low proportion of renters compared to homeowners, and a median income of $133,409, suggesting that tenants may have the means to contribute to their rent payments if necessary. However, the primary focus for landlords should remain on the stability and reliability of the income stream provided by the Section 8 program.
In summary, ZIP 21776 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Landlords can leverage the higher FMR to secure consistent rental income, while also benefiting from the financial security that comes with government-backed housing assistance programs.
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.