Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,350 |
| 1 Bedroom | $2,450 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,450 |
| 4 Bedrooms | $4,070 |
| 5 Bedrooms | $4,721 |
| 6 Bedrooms | $5,288 |
| 7 Bedrooms | $5,711 |
| 8 Bedrooms | $5,997 |
U.S. Census Bureau data (2024)
To fit ZIP 22134 into a Section 8 portfolio strategy, it should be considered a cash-flow anchor. This classification is based on the financial metrics available for the area, which falls under the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area.
The Fair Market Rent (FMR) for ZIP 22134 in fiscal year 2024 is set at $2100. In contrast, the market rent stands at $2,311, and the median home value is $317,767. The difference between the FMR and the market rent suggests that properties in this ZIP code can be rented at rates slightly above the FMR, ensuring steady cash flow for landlords participating in the Section 8 program.
A cash-flow anchor is essential for any portfolio strategy because it provides reliable income that can offset potential losses or underperformance in other areas of the investment. ZIP 22134's proximity to the Washington metropolitan area ensures a consistent demand for rental properties, making it an ideal candidate for such a role.
The high renter share of 96.6% further supports the idea of using this ZIP code as a cash-flow anchor. With such a significant portion of residents being renters, there is little risk of vacancy, which is critical for maintaining steady cash flow. Additionally, the median income of $70,268 indicates that the majority of residents have the financial stability to meet their rent obligations on time, reducing the likelihood of delinquency.
While appreciation plays and diversifiers are important components of a well-rounded investment strategy, ZIP 22134 lacks the necessary conditions to be classified as either. The absence of specific data regarding price-cut shares and days on market (DOM) makes it difficult to assess its potential for capital appreciation. Similarly, the high renter share does not provide the diversity needed to mitigate risks associated with tenant turnover and income volatility.
In summary, ZIP 22134 serves best as a cash-flow anchor within a Section 8 portfolio strategy due to its stable rental market, consistent demand for housing, and the financial security of its residents. These factors ensure that landlords can rely on steady income from this area without the need for speculative growth or diversification.
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.