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 | $2,170 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,270 | $296,468 | 0.77% | D |
| 2BR | $2,510 | $407,658 | 0.62% | D |
| 3BR | $3,200 | $752,599 | 0.43% | F |
| 4BR | $3,770 | $1,327,816 | 0.28% | F |
| 5BR | $4,373 | $1,911,850 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 22302 in Arlington, VA, presents an interesting scenario when viewed from the renter's perspective. The median household income here stands at $123,539, which initially suggests a strong financial position for residents. However, the market rate for rent, known as ZORI (Zillow Observed Rent Index), is set at $2,291 per month. This figure represents a significant portion of the average household's income, indicating that while the area has a high earning potential, the cost of living, particularly housing, is also quite steep.
Comparatively, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,200, slightly below the ZORI but still within a reasonable range for most households. The FMR is the basis for calculating Housing Choice Voucher payments, commonly known as Section 8 vouchers. Given that 45.6% of the 18,026 population are renters, the competition among landlords is fierce, especially for units that fall within the affordable range for both market-rate and voucher-supported tenants.
The affordability gap in 22302 is evident when considering that even with the median income, a substantial portion of it goes towards rent. For those relying on Section 8 vouchers, the FMR provides a benchmark for landlords to price their units competitively without overcharging. The difference between the market rate and the FMR means that landlords have to make a strategic decision regarding whether to accept voucher tenants or focus on cash-paying renters who might be willing to pay higher rates.
Landlords in ZIP 22302 should take note that while cash-paying tenants might offer higher rents, the influx of voucher holders could stabilize the rental market and ensure steady occupancy. The key is to balance the desire for higher monthly income against the stability and long-term benefits of accepting Section 8 vouchers. A well-placed unit at $2,200 could attract a reliable tenant, whereas pricing too high might leave the property vacant in a competitive market.
In summary, landlords in Arlington, VA, must carefully consider their strategy in light of the local economic conditions and the competition for tenants. Pricing units near the FMR can help secure a stable tenant base, while higher prices might cater to those with higher incomes but risk vacancy due to the tight rental market.
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.