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 | $2,090 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $220,668 | 0.99% | C |
| 2BR | $2,410 | $317,491 | 0.76% | D |
| 3BR | $3,070 | $802,593 | 0.38% | F |
| 4BR | $3,620 | $1,094,838 | 0.33% | F |
| 5BR | $4,199 | $1,324,619 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 22307, located in Alexandria, VA, centers around the significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR is set at $2020, while the actual market rent, as measured by ZORI, stands at $3113. This represents a difference of $1093, or approximately 35%, between what the government deems fair and what the open market demands.
In Alexandria, where 26.3% of residents are renters and the median home value is $750,749, the disparity is particularly stark. The median household income of $141,667 further highlights the economic divide, making it evident that the FMR does not reflect the local rental market accurately.
Given that the FMR is significantly lower than the market rent, landlords and small-portfolio investors should be aware of the costs associated with housing voucher tenants. These costs can include reduced rental income, as voucher payments will not cover the full market rate. This shortfall can impact cash flow and overall investment returns.
The gap also indicates that properties in 22307 might struggle to attract non-voucher tenants willing to pay the FMR, leading to potential vacancies or the need for property upgrades to justify higher rents. In this context, the Section 8 program serves more as a safety net for affordability rather than a lucrative yield play, given the high median home values and incomes.
To summarize, the $1093 gap, or 35%, between the FMR and market rent in 22307 poses challenges for landlords participating in the Section 8 program. While it ensures a steady stream of tenants, it comes with the trade-off of receiving less than the market rate, which can affect profitability in a high-rent area like Alexandria, VA.
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.