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Montgomery County/Potomac/20854

20854

ZIPSAFMR
Montgomery County, MD
Zillow

ZIP Investment Score

71Below average

095130300
BRFMR
Eff. Rent
0 BR$3,170$2,220
1 BR$3,310$2,300
2 BR$3,660$2,490
3 BR$4,660$3,740
4 BR$5,490$4,340
5 BR$6,313Not available
6 BR$7,261Not available
7 BR$8,350Not available
8 BR$9,602Not available

Purchase Price Calculator

Maximum purchase price
$308,096

Cost breakdown

+Likely effective rent$2,490
HUD FMR$3,660
Market rentUsed$2,490
Est. payment standard (90%)$3,290
-Principal and interest-$1,558
Loan amount$246,477
Down payment$61,619
Rate6.50%
Term30 years
-Operating costs-$732
Property taxes-$308
Insurance-$175
Utilities$0
HOA$0
Management-$249
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$39,720(64.5% ROI)
Projected value
$331,786
Return breakdown
Property appreciation+$23,690
Loan principal paid down+$8,831
Rental cash flow+$7,200
5-year hold
+$68,234(110.7% ROI)
Projected value
$348,583
Return breakdown
Property appreciation+$40,486
Loan principal paid down+$15,747
Rental cash flow+$12,000
10-year hold
+$147,816(239.9% ROI)
Projected value
$394,390
Return breakdown
Property appreciation+$86,293
Loan principal paid down+$37,523
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
1.43
1 BR
1.44
2 BR
1.47
3 BR
1.25
4 BR
1.26
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 20854 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 20854 (Potomac, MD) is $3,660 a month. That is up 8.6% from $3,370 in FY 2026. Potomac is in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, where HUD requires housing authorities to set voucher payment standards by ZIP code using Small Area FMRs. Among 77 ZIP codes in Montgomery County, 20854 is tied for the highest two-bedroom rent (county range $1,200–$3,660). The median county two-bedroom FMR in Maryland is $1,875, so ZIP 20854 is 95% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 20854
BedroomsFY 2027Change90–110% range
Studio$3,170+8.2%$2,853–$3,487
1BR$3,310+9.6%$2,979–$3,641
2BR$3,660+8.6%$3,294–$4,026
3BR$4,660+9.6%$4,194–$5,126
4BR$5,490+9.8%$4,941–$6,039

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 20854
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$3,170$3,310$3,660$4,660$5,490
FY 2026$2,930$3,020$3,370$4,250$5,000
FY 2025$3,020$3,080$3,470$4,340$5,120
FY 2024$2,660$2,710$3,070$3,820$4,530
FY 2023$2,390$2,430$2,760$3,450$4,120

Two-bedroom rent in nearby Montgomery County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 20854
20847$2,470−32.5%
20848$2,470−32.5%
20849$2,470−32.5%
20850$2,990−18.3%
20851$2,370−35.2%
20852$3,080−15.8%
20853$2,300−37.2%
20854Current$3,660—
20855$2,920−20.2%
20857$2,470−32.5%
20859$2,470−32.5%
20860$2,590−29.2%

Questions about ZIP 20854 rents

How much will Section 8 pay for a two-bedroom in ZIP 20854?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $3,660, that basic range is $3,294 to $4,026 a month. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 20854 in?

ZIP 20854 is in the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area. HUD requires Small Area FMRs in this area, so payment standards are set by ZIP code.

How much did fair market rent change in ZIP 20854 for FY 2027?

The two-bedroom FMR rose 8.6%, from $3,370 in FY 2026 to $3,660 in FY 2027. Since FY 2023 it has risen 32.6%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentPotomac, MD fair market rentMD statewide rentsWhat is SAFMR?Data sources