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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $391,090 | 0.38% | F |
| 3BR | $1,910 | $541,158 | 0.35% | F |
| 4BR | $2,250 | $684,550 | 0.33% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 22620 (Boyce, VA) might have several concerns regarding the feasibility of investing in properties through the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1440 cover the mortgage on a $568,673 home?
The FMR of $1440 for ZIP 22620 in fiscal year 2024 is indeed a critical factor when assessing whether it can support a mortgage on a property valued at $568,673. To determine if this amount is sufficient, one must consider the interest rate and loan terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $568,673 home would be approximately $2995. Clearly, the FMR does not cover the entire mortgage payment, indicating that additional income sources such as private tenants or rental income from other units will be necessary to make up the difference.
Objection 2: Is there enough renter demand at 16.5%?
The percentage of renters in ZIP 22620 is reported to be 16.5%. This figure suggests a moderate level of demand for rental properties. However, the percentage alone does not provide a complete picture of the market. It is important to also consider the total number of households in the area and the vacancy rate. With a 16.5% rental rate, the market may be competitive, but it is still viable. Landlords should research local vacancy rates and the number of potential tenants to ensure they can fill their units.
Objection 3: Will vouchers keep pace with $1,121 market rents?
The question of whether vouchers will keep pace with market rents of $1,121 is crucial for maintaining profitability. The FMR set by HUD is $1440, which is higher than the current market rent. This implies that voucher holders could potentially cover more than the average market rent, providing a buffer against rising costs. However, it is essential to monitor the local housing authority's policies and funding levels to anticipate any changes that could affect the value of vouchers.
In conclusion, while the FMR of $1440 does not fully cover the mortgage on a $568,673 home, it does provide a solid base for rental income. The 16.5% rental rate indicates a stable but competitive market. Lastly, the discrepancy between the FMR and the market rent of $1,121 suggests that vouchers can help mitigate financial risks. Nonetheless, investors must remain vigilant about local market dynamics and policy changes to ensure sustained profitability.
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.