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 | $2,760 |
| 1 Bedroom | $2,880 |
| 2 Bedrooms | $3,190 |
| 3 Bedrooms | $4,070 |
| 4 Bedrooms | $4,790 |
| 5 Bedrooms | $5,556 |
| 6 Bedrooms | $6,223 |
| 7 Bedrooms | $6,721 |
| 8 Bedrooms | $7,057 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,880 | $374,488 | 0.77% | D |
| 2BR | $3,190 | $547,782 | 0.58% | F |
| 3BR | $4,070 | $700,690 | 0.58% | F |
| 4BR | $4,790 | $836,860 | 0.57% | F |
U.S. Census Bureau data (2024)
Arlington, VA, specifically ZIP code 22206, serves as a strategic component within a Section 8 portfolio due to its characteristics that align well with the goal of being a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 22206 in fiscal year 2024 is set at $2,560. This figure is notably higher than the current market rent of $2,352, providing a positive spread that can be leveraged to ensure steady cash flow for landlords and small-portfolio investors.
The median home value in ZIP 22206 is $558,942, indicating a robust housing market with relatively high property values. However, the primary focus for Section 8 landlords should be on the rental aspect, where the FMR exceeds the market rent, allowing for a buffer that can absorb potential maintenance costs or other expenses associated with property management. This positive differential ensures that Arlington, particularly ZIP 22206, remains a reliable source of income, especially when compared to areas where the FMR might be lower or closer to market rates.
Arlington's ZIP 22206 also has an appreciation play potential, evidenced by the low price-cut share of 0.2% and a short Days on Market (DOM) of 6 days. These metrics suggest that properties in this area sell quickly without significant discounts, which could benefit investors looking to exit their investments in the future. However, given the focus on cash flow, the spread between the FMR and market rent is the key factor here.
ZIP 22206 is not primarily positioned as a diversifier within a Section 8 portfolio, although the 54.1% renter share and median income of $140,877 do contribute to a stable tenant base. Diversification strategies typically involve balancing different types of investments across various risk profiles, but in this context, Arlington's strong cash flow generation capabilities make it a solid choice for anchoring a Section 8 portfolio rather than solely for diversification.
In conclusion, ZIP 22206 in Arlington, VA, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between the FMR and market rent, combined with the high median home value, supports this role, ensuring a consistent and reliable income stream for investors.
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.