Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,850 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 21790 reveals some limitations due to incomplete data, but we can still derive a rough picture of the potential Section 8 cap rates. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1710 annually. However, the median home value and market rent figures are not available, complicating a direct comparison.
To calculate the implied gross yield for a two-bedroom apartment under the Section 8 program, we use the annualized FMR of $1710. Assuming a property value based on typical Section 8 units, let's estimate a property value of $171,000 for simplicity. This yields an implied gross rental yield of about 10% ($1710 / $171,000).
In contrast, without the market rent figure, it's impossible to provide an exact gross yield for non-Section 8 rentals. However, if we were to hypothetically assume that market rents are higher, say around $1500 per month or $18,000 annually, the gross yield would be significantly better at approximately 10.5% ($18,000 / $171,000).
The renter density in ZIP 21790 stands at 100%, indicating a robust demand for rental properties. Unfortunately, the Days on Market (DOM) figure is also not available, which would have helped us understand how quickly properties are rented out and the associated vacancy risks.
Given the 100% renter density, the Section 8 program presents a stable tenant pool with guaranteed rental income. The lower gross yield of 10% under Section 8 is offset by the security of having tenants who are vetted and whose rent is backed by the government. For investors looking for consistent cash flow with minimal risk, the Section 8 option is attractive despite the slightly lower yield compared to hypothetical market rents.
However, it's important to note that the lack of precise market rent and median home value data makes these calculations speculative. Investors should conduct thorough local market research to refine these estimates and understand the specific dynamics of ZIP 21790.
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.