Section 8 Fair Market Rent (FMR) for ZIP 22304 - 2027

Investment Score for ZIP 22304

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	$2,430
1 Bedroom	$2,540
2 Bedrooms	$2,810
3 Bedrooms	$3,580
4 Bedrooms	$4,220
5 Bedrooms	$4,895
6 Bedrooms	$5,482
7 Bedrooms	$5,921
8 Bedrooms	$6,217

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,540	$261,392	0.97%	C
2BR	$2,810	$368,718	0.76%	D
3BR	$3,580	$699,775	0.51%	F
4BR	$4,220	$945,251	0.45%	F
5BR	$4,895	$1,370,812	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 22304 (Alexandria, DC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 22304 in Alexandria, DC, is set at $2560 for a two-bedroom unit in 2026. This figure represents 30.2% of the median household income of $101,600. However, the actual rental market in this area is significantly higher. According to the provided data, the Zillow median price for a two-bedroom home is $373,950, which translates to a monthly mortgage payment of approximately $1558 based on typical financing terms. When combined with other expenses such as property taxes, insurance, and maintenance, the total cost can easily exceed the FMR. This discrepancy creates significant constraints for voucher holders. The FMR is intended to cover the average rent for a given area, but in Alexandria, it falls far short of what landlords might charge. As a result, voucher holders often struggle to find units that accept their vouchers and fit within the FMR guidelines. Landlords may be hesitant to accept vouchers due to the lower rent compared to market rates, leading to a limited pool of available properties for Section 8 tenants. #### Affordability & Renter Profile ZIP code 22304 has a high renter population, with 59.1% of residents being renters. This indicates a strong demand for rental housing in the area. Additionally, the occupancy rate of 95.4% suggests that the market is quite tight, with few vacancies available. Given the median household income of $101,600, many residents are likely able to afford market-rate rentals, but the high renter percentage also implies a significant number of individuals who rely on affordable housing options like Section 8 vouchers. The high renter percentage and tight occupancy rate indicate that there is a robust rental market in Alexandria. However, the affordability gap is stark. The FMR for a two-bedroom unit is only about 70% of the median market rent, making it challenging for low-income households to secure housing without assistance. This tight market dynamic means that landlords have less incentive to accept Section 8 vouchers unless they are willing to operate at a reduced profit margin. #### Investor Angle From an investor perspective, operating at the FMR in ZIP code 22304 would likely result in negative cash flow. The FMR for a two-bedroom unit is $2560, while the median market rent is much higher. For instance, a typical two-bedroom unit could command a rent of around $3000 per month, which is nearly 12.2 times the FMR. This high price-to-FMR ratio suggests that the market is overheated relative to the FMR, making it difficult for investors to achieve positive cash flow when accepting Section 8 vouchers. Investment grade in this context would be low, as the FMR does not align well with market rents. Investors looking to maximize returns would need to consider alternative strategies, such as targeting higher-end units that do not rely on government subsidies or finding ways to increase the value of their properties through renovations and upgrades. #### Specific Actionable Insights 1. **Target Higher-End Units**: Given the high price-to-FMR ratio, investors should focus on acquiring and renting out higher-end units that can command market rates. This strategy would ensure better cash flow and potentially higher returns. For example, a three-bedroom unit with an FMR of $3230 could realistically rent for over $3500, providing a substantial buffer against the lower FMR. 2. **Consider Property Upgrades**: If an investor decides to target properties that can accept Section 8 vouchers, they should consider investing in property upgrades to increase the likelihood of acceptance by voucher holders. Improvements such as modern kitchens, updated bathrooms, and energy-efficient appliances can make a unit more attractive to potential tenants. These upgrades can also help justify higher rents if the investor chooses to rent above the FMR. 3. **Explore Alternative Subsidies**: Alexandria has various other housing subsidy programs that might offer better alignment with market rents. Investors should research these alternatives to see if they can provide a more viable path to positive cash flow. For instance, some local programs might offer higher subsidies or fewer restrictions compared to the federal Section 8 program. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market in Alexandria, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The FMR is significantly below market rates, making it challenging to achieve positive cash flow. Instead, investors should look for areas where the FMR more closely aligns with market rents, or consider alternative investment strategies that do not rely solely on Section 8 vouchers.

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.