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 |
|---|---|---|---|---|
| 1BR | $2,090 | $305,980 | 0.68% | D |
| 2BR | $2,310 | $416,777 | 0.55% | F |
| 3BR | $2,940 | $769,083 | 0.38% | F |
| 4BR | $3,470 | $951,025 | 0.36% | F |
| 5BR | $4,025 | $994,899 | 0.4% | F |
U.S. Census Bureau data (2024)
Alexandria, VA's ZIP code 22311 is a densely populated area with a significant rental market presence. With a total population of 19,337, it stands out due to the high percentage of renters at 81.5%, indicating a strong demand for rental properties. The median income in this neighborhood is relatively robust at $87,626, which suggests a stable economic environment where residents can afford decent housing. However, the median home value of $710,793 reflects the high cost of homeownership, further reinforcing the attractiveness of renting in this area.
The rent economics in ZIP 22311 are particularly interesting for potential investors. The Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for this zip code for fiscal year 2024 is $2,190. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher. In contrast, the market rent, as measured by Zillow's ZORI index, is significantly lower at $1,816. This discrepancy between FMR and market rent presents an opportunity for hands-off voucher operators who can benefit from the higher HUD-set rates without needing to actively manage their properties beyond ensuring compliance with Section 8 standards.
For hands-on value-add buyers, ZIP 22311 also offers compelling prospects. Given the high median income and the significant gap between FMR and market rent, there is potential to renovate properties and command rents closer to the FMR, thus maximizing returns. Additionally, the high percentage of renters and the limited supply of affordable homeownership options create a solid foundation for value-add strategies that focus on improving property quality to attract tenants willing to pay premium rents.
In summary, ZIP 22311 in Alexandria, VA, is well-suited for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can leverage the difference between market rent and FMR to secure steady cash flows with minimal management effort. Meanwhile, value-add buyers can capitalize on the neighborhood's demographics and economic conditions to enhance property values and rents, thereby increasing their investment returns.
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.