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 | $1,530 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,450 | $617,865 | 0.4% | F |
| 4BR | $2,790 | $887,998 | 0.31% | F |
| 5BR | $3,236 | $1,139,545 | 0.28% | F |
U.S. Census Bureau data (2024)
ZIP 21797, located within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, serves best as a cash-flow anchor in a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for ZIP 21797 in fiscal year 2024 is set at $2080, which is significantly higher than the average market rent of $1535. This spread indicates that landlords participating in the Section 8 program can expect stable, government-backed rental income that exceeds local market rates, providing a reliable source of cash flow.
The median home value in ZIP 21797 stands at $810,929, reflecting a high-end residential area where property values are unlikely to fluctuate drastically. This stability further supports the role of this ZIP code as a cash-flow anchor, ensuring that the investment remains secure even if the broader real estate market experiences downturns.
While the appreciation potential in ZIP 21797 cannot be quantified with specific percentages due to limited data on price-cut shares and days on market (DOM), the strong economic indicators suggest a steady appreciation trend. The high median income of $189,241 implies a robust local economy capable of supporting property values over time.
The renter share of 8.3% in ZIP 21797 is relatively low compared to other areas, indicating that this ZIP code may not be as diverse in terms of rental demand. However, the reliability of the Section 8 program ensures a consistent tenant base, mitigating the risks associated with lower renter share.
In conclusion, ZIP 21797's high FMR relative to market rents, coupled with its stable median home value and strong local economy, positions it ideally as a cash-flow anchor within a Section 8 portfolio strategy. Landlords and small-portfolio investors should prioritize this ZIP code for its ability to provide predictable and above-market rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.