Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,160 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $3,170 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
The Section 8 analysis for ZIP code 22350 is based on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 22350 in fiscal year 2024 is set at $2090. However, the market rent data is currently unavailable, which complicates a direct comparison.
In the context of Unknown, DC, where the percentage of renters is unknown and the median home value and median income figures are also not available, landlords must consider the implications of the FMR on their investment strategy. When FMR exceeds the market rent, it can transform a property into a yield play. This means that landlords can potentially increase their rental income by accepting Section 8 tenants who are subsidized up to the FMR level, even if the market rent would be lower. For example, if the market rent were hypothetically $1800, the gap would be $290, representing an increase of about 16.1% over the market rate. This scenario would benefit landlords by providing a higher rental income than what they could get from non-subsidized tenants.
Conversely, when FMR is below the market rent, landlords face the decision of whether to accept Section 8 tenants at a lower rate than what the open market might offer. This situation can reduce the overall profitability of a property, as the landlord must forgo potential higher rents. If the market rent were $2200, the gap would be $110, or approximately 5.2% below the market rate. In this case, landlords must weigh the benefits of guaranteed rental income against the lower rate compared to the open market.
The decision to participate in the Section 8 program should be made with careful consideration of these factors. Landlords should evaluate the stability of rental income versus the potential for higher yields from market-rate tenants. Given the lack of specific market rent data for ZIP 22350, it's crucial to gather local insights to understand the exact financial impact.
Data Sources: FMR data from HUD (2027).
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.