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 | $1,540 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $299,807 | 0.59% | F |
| 3BR | $2,270 | $380,401 | 0.6% | F |
| 4BR | $2,670 | $535,732 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 22534 (Partlow, VA) reveals a significant difference between the Federal Market Rent (FMR) and the actual market rent levels, impacting potential gross yields for real estate investments.
The annualized Fair Market Rent (FMR) for a 2-bedroom apartment in Partlow, VA, for FY 2024 is set at $1820. This translates into an implied gross yield of approximately 4.52% when compared to the median home value of $402,591. The calculation is straightforward: divide the annualized FMR by the median home value, which gives you the percentage yield. In this case, it's $1820 / $402,591 = 0.00452, or 4.52%.
In contrast, the Census Bureau's American Community Survey (ACS) reports the market rent for a similar unit at $1,605. Using this figure, the implied gross yield drops to about 3.99%. Again, the calculation involves dividing the annualized market rent by the median home value: $1,605 / $402,591 = 0.00399, or 3.99%.
The disparity between these two gross yields is notable. While the FMR provides a benchmark for rental assistance programs, the market rent reflects what tenants are actually willing to pay. Given the low renter density of 14.6%, securing long-term Section 8 tenants might be challenging. Additionally, the N/A-day Days on Market (DOM) suggests that there is either insufficient data or a lack of regular rental activity, making it difficult to predict how quickly a property can be leased out.
Considering these factors, the gross yield based on the market rent of 3.99% is likely more realistic for investors. It accounts for the actual rental environment rather than relying solely on government-set rates. However, the FMR scenario offers a higher gross yield, which could be attractive if a landlord can secure consistent Section 8 tenancy. Investors should weigh the benefits of higher yield against the risks associated with lower tenant demand and potentially longer vacancy periods.
Ultimately, the choice between aiming for the higher FMR yield or settling for the more realistic market rent yield depends on the investor's risk tolerance and ability to manage Section 8 properties effectively. For those who can navigate the complexities of the program, the higher yield presents an opportunity; otherwise, aligning with market rents ensures a more stable cash flow.
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.