Section 8 Fair Market Rent (FMR) for ZIP 22204 - 2027

Investment Score for ZIP 22204

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,080
1 Bedroom	$2,170
2 Bedrooms	$2,400
3 Bedrooms	$3,060
4 Bedrooms	$3,600
5 Bedrooms	$4,176
6 Bedrooms	$4,677
7 Bedrooms	$5,051
8 Bedrooms	$5,304

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,170	$277,425	0.78%	D
2BR	$2,400	$462,199	0.52%	F
3BR	$3,060	$778,162	0.39%	F
4BR	$3,600	$986,128	0.37%	F
5BR	$4,176	$1,163,640	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 22204 (Arlington, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 22204 in Arlington, VA, is set by HUD for 2026 as follows: - 0BR: $1920 - 1BR: $1980 - 2BR: $2210 - 3BR: $2790 - 4BR: $3280 Comparing these figures to actual rents in the area, we find that the Zillow median price for a 2BR unit is $476,863. This translates to a monthly rent of approximately $1880 if we assume a typical rental yield of 5%. The FMR for a 2BR unit is $2210, which means that the actual rent is slightly below the FMR. However, the price-to-FMR ratio is quite high at 18.0x, indicating that the purchase price of properties far exceeds what would be considered affordable based on the FMR alone. For voucher holders, the primary constraint is that they can only afford units up to the FMR limit. In Arlington, this means that a household with a Section 8 voucher can spend a maximum of $2210 per month on a 2BR unit. Given that the occupancy rate is 93.6%, there is limited vacancy in the market, making it challenging for voucher holders to find suitable housing within their budget. #### Affordability & Renter Profile ZIP code 22204 has a population of 51,921, with 59.8% of residents being renters. The median household income is $107,941, which suggests that the majority of residents have relatively high incomes. However, the affordability of housing is a significant concern, especially for those relying on Section 8 vouchers. The FMR for a 2BR unit is $2210, which represents 24.6% of the median income. This indicates that the housing costs are manageable for households earning close to the median income. However, for those receiving Section 8 assistance, the situation is much tighter. They must find units that do not exceed $2210 per month, which is a small fraction of the overall market. Given the high occupancy rate and the fact that nearly 60% of residents are renters, this is a tight market. There is a strong demand for rental properties, but the supply is constrained, leading to higher rents and competition among tenants. The high price-to-FMR ratio further underscores the challenge of finding affordable housing in this area. #### Investor Angle From an investor’s perspective, the key question is whether renting at the FMR level is financially viable. Based on the Zillow median price for a 2BR unit ($476,863), assuming a 5% rental yield, the expected monthly rent would be around $1880. This is below the FMR of $2210, suggesting that renting at the FMR could potentially generate positive cash flow. However, the high price-to-FMR ratio (18.0x) indicates that the purchase price of properties is significantly higher than the FMR. This makes it difficult to achieve a good return on investment unless the property can be rented above the FMR or the investor can leverage other factors such as appreciation or tax benefits. In terms of investment grade, Arlington is generally considered a stable and desirable location due to its proximity to Washington, D.C., and its strong economic base. However, the high cost of entry into the market and the tight rental constraints make it a moderate-risk investment for Section 8-focused investors. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like 0BR or 1BR apartments. These units have lower FMRs ($1920 and $1980 respectively) and may be more likely to be rented out at or near the FMR without exceeding the budget of voucher holders. For example, a 0BR unit at $1920 per month is still below the Zillow median price-based rent of $1880, providing a margin for positive cash flow. 2. **Consider Property Location**: Within ZIP code 22204, certain sub-areas might offer better opportunities for renting at or near the FMR. Investors should conduct thorough research on neighborhood-specific rental prices and consider areas where the median rent is closer to the FMR. This could involve looking at less desirable or newer developments where rents might be more competitive. 3. **Engage with Local Real Estate Agents**: To navigate the complexities of the Arlington rental market, investors should work closely with local real estate agents who have a deep understanding of the area. These agents can provide valuable insights into the best neighborhoods for Section 8 tenants and help identify properties that are likely to be rented out at the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 22204 is to **Hold**. While the market offers some potential for positive cash flow, particularly with smaller units, the high purchase price relative to the FMR and the tight rental market make it a challenging environment. Investors should carefully evaluate their risk tolerance and consider focusing on smaller units or areas within Arlington where rental prices are more aligned with the FMR. This ZIP code presents a mixed picture: a robust economy and high median income, but also significant challenges in finding affordable housing for voucher holders. Therefore, a cautious approach is advised, with a focus on maximizing returns through strategic property selection and location.

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.