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 | $2,010 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $423,254 | 0.55% | F |
| 3BR | $2,960 | $489,844 | 0.6% | D |
| 4BR | $3,480 | $634,546 | 0.55% | F |
| 5BR | $4,037 | $721,158 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 22406, located in Fredericksburg, VA, presents an interesting scenario for both renters and landlords. The median household income here stands at $129,167, which is significantly higher than the national average. However, when it comes to rental affordability, the picture becomes more nuanced. The market rate rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,898. This figure represents the typical monthly rent for a property in the area.
In comparison, the Fair Market Rent (FMR) for ZIP 22406 for fiscal year 2024 is $1,690. This is the amount that housing authorities use to determine the maximum rent for a voucher holder. The difference between the ZORI and the FMR highlights a significant affordability gap for those relying on vouchers. Households with a median income of $129,167 might find the market rate rent manageable, but for those with lower incomes who depend on vouchers, the $1,898 market rate is considerably higher than the $1,690 they could pay with a voucher.
With 23.7% of the population being renters and a total population of 27,367, the competition among landlords is likely to be robust. Landlords who accept vouchers will have access to a segment of the market that cannot afford the market rate rents. On the other hand, landlords who focus on cash-paying tenants may attract households with higher incomes, but they must also contend with a smaller pool of potential tenants willing and able to pay the premium rates.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of reliable tenants, though it means settling for a lower rent than the market rate. Cash-paying tenants offer the potential for higher revenue, but landlords must be prepared to compete in a market where many properties may be priced similarly high. Given the data, landlords should consider their long-term goals and the specific needs of their properties when deciding whether to accept vouchers or focus on cash-paying tenants.
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.