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 | $2,000 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $934,210 | 0.25% | F |
| 3BR | $2,940 | $1,090,125 | 0.27% | F |
| 4BR | $3,470 | $1,285,978 | 0.27% | F |
| 5BR | $4,025 | $1,815,739 | 0.22% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 22205, Arlington, VA, reveals a favorable environment for those seeking steady cash flow. The HUD Fair Market Rent (FMR) for this area is set at $2,050 for FY 2024, which is notably higher than the average market rent reported by the Census ACS at $1,911. This indicates that voucher tenants will generally provide positive cash flow at the HUD FMR rate.
To further understand the investment potential, consider the median home value in ZIP 22205, which stands at $1,213,756. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.16%. This low ratio suggests that rental properties are undervalued relative to the high cost of homeownership, making rentals an attractive option for many residents.
Investors should also be aware of the local real estate market conditions. The median days on market (DOM) is listed as N/A, indicating either insufficient data or a highly competitive seller's market where homes sell quickly. Additionally, the price-cut share of 0.1% implies that sellers rarely have to reduce their asking prices, reflecting strong demand for both rental and owner-occupied properties.
Given these factors, the strongest angle for investors in ZIP 22205 is likely cash flow. The gap between HUD FMR and market rent ensures that voucher holders will pay above the typical market rate, providing a reliable income stream. While appreciation and stability are also positive aspects of this market, the immediate financial benefit of cash flow makes it the most compelling reason for Section 8 investors to consider Arlington, VA, for their portfolio expansion.
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.