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 | $2,990 |
| 1 Bedroom | $3,120 |
| 2 Bedrooms | $3,450 |
| 3 Bedrooms | $4,400 |
| 4 Bedrooms | $5,180 |
| 5 Bedrooms | $6,009 |
| 6 Bedrooms | $6,730 |
| 7 Bedrooms | $7,268 |
| 8 Bedrooms | $7,631 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,120 | $376,973 | 0.83% | C |
| 2BR | $3,450 | $597,034 | 0.58% | F |
| 3BR | $4,400 | $991,936 | 0.44% | F |
| 4BR | $5,180 | $1,173,350 | 0.44% | F |
| 5BR | $6,009 | $1,432,154 | 0.42% | F |
U.S. Census Bureau data (2024)
The dynamics of the ZIP 22203 market in Arlington, VA, reveal a rental sector that is robust and under significant pressure. With a Fair Market Rent (FMR) set at $2,670 for fiscal year 2024 and a market rent of $2,821 as indicated by ZORI (Zillow Observed Rental Index), it's clear that the rental market is competitive. The FMR, established by HUD, represents the threshold above which a household is considered to be paying more than 30% of its income on housing, signaling that rents in this area are high enough to challenge affordability.
A 0.1% price-cut share suggests that landlords rarely need to lower their asking rents to attract tenants, indicating strong demand relative to supply. This is further supported by the fact that the median home value stands at $650,949, a figure that underscores the financial commitment required to purchase property in the area. Given the high cost of homeownership, many potential buyers are likely priced out, pushing them into the rental market instead.
The 70.7% share of renters in the population highlights a significant trend towards renting rather than owning. This high percentage implies long-term housing pressure as the demand for rental properties remains consistently high. In such an environment, landlords can expect steady occupancy rates and potentially increasing rents, driven by the lack of affordable homeownership options and the preference for renting among residents.
In conclusion, ZIP 22203 is characterized by a rental market where demand outpaces supply, evidenced by the low price-cut share and the high median home value that discourages ownership. The substantial renter share points to a sustained pressure on rental properties, making it a market in motion with continuous opportunities for landlords and challenges for those seeking to buy homes.
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.