Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
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 | $3,170 |
| 1 Bedroom | $3,310 |
| 2 Bedrooms | $3,660 |
| 3 Bedrooms | $4,660 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,310 | $360,765 | 0.92% | C |
| 2BR | $3,660 | $624,153 | 0.59% | F |
| 3BR | $4,660 | $1,013,504 | 0.46% | F |
| 4BR | $5,490 | $1,273,767 | 0.43% | F |
| 5BR | $6,368 | $1,570,492 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 22202, located in Arlington, VA, revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $3070, while the market rent, as measured by ZORI, stands at $2677. This means that the FMR is higher than the market rent by $393, or approximately 14.7%. In this scenario, landlords can benefit from accepting voucher tenants because they will receive a guaranteed income that exceeds the typical market rate.
Arlington, VA has a rental market where 79.0% of residents are renters. The median home value is $767,252, and the median income is $133,762. These figures indicate a relatively affluent area with a strong demand for rentals. However, the high FMR compared to the market rent suggests that landlords who accept voucher tenants can expect to see a higher yield on their investment properties than those renting at market rates.
Accepting Section 8 voucher tenants below the open-market rates does not pose a financial risk to landlords in this context. Instead, it provides an opportunity to secure a steady stream of income that is higher than what the market currently offers. This is particularly advantageous given the high percentage of renters in the area, which ensures a consistent demand for rental units.
To summarize, the gap between the FMR and the market rent in ZIP 22202 makes it a compelling yield play for landlords and small-portfolio investors. By accepting voucher tenants, they can capitalize on this discrepancy, earning more than the average market rent while serving a significant portion of Arlington's population.
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.