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 | $1,600 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,320 | $509,430 | 0.46% | F |
| 4BR | $2,730 | $673,021 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 22742 include significant tenant turnover, which can be expected due to the difference between the market rent of $2,048 and the Fair Market Rent (FMR) of $1910 for fiscal year 2024. This gap indicates that landlords may struggle to attract tenants willing to pay the lower FMR rates set by the program. Additionally, the area faces an exposure to vacancy, though the exact number of days on market (DOM) is not available, suggesting uncertainty around how long properties might remain vacant. The deferred maintenance risk is also notable, given the typical home value of $535,743 and a median income of $103,447. Landlords must be prepared to handle maintenance costs that may exceed the average income level, potentially leading to underfunded repairs.
However, these risks are somewhat mitigated by the high renter share of 15.5%. High renter density often translates into a robust demand for rental housing, including those supported by Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants who are committed to their rental agreements.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.