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Montgomery County/Derwood/20855

20855

ZIPSAFMR
Montgomery County, MD
Zillow

ZIP Investment Score

99Above average

095130300
BRFMR
Eff. Rent
0 BR$2,530$1,450
1 BR$2,640$1,620
2 BR$2,920$2,310
3 BR$3,720$3,060
4 BR$4,380$3,480
5 BR$5,037Not available
6 BR$5,793Not available
7 BR$6,661Not available
8 BR$7,661Not available

Purchase Price Calculator

Maximum purchase price
$281,349

Cost breakdown

+Likely effective rent$2,310
HUD FMR$2,920
Market rentUsed$2,310
Est. payment standard (90%)$2,630
-Principal and interest-$1,423
Loan amount$225,079
Down payment$56,270
Rate6.50%
Term30 years
-Operating costs-$687
Property taxes-$281
Insurance-$175
Utilities$0
HOA$0
Management-$231
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$36,897(65.6% ROI)
Projected value
$302,982
Return breakdown
Property appreciation+$21,633
Loan principal paid down+$8,064
Rental cash flow+$7,200
5-year hold
+$63,352(112.6% ROI)
Projected value
$318,320
Return breakdown
Property appreciation+$36,972
Loan principal paid down+$14,380
Rental cash flow+$12,000
10-year hold
+$137,067(243.6% ROI)
Projected value
$360,150
Return breakdown
Property appreciation+$78,801
Loan principal paid down+$34,266
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
1.74
1 BR
1.63
2 BR
1.26
3 BR
1.22
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 20855 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 20855 (Derwood, MD) is $2,920 a month. That is up 8.1% from $2,700 in FY 2026. Derwood 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, 20855 has the 13th-highest two-bedroom rent (county range $1,200–$3,660). The median county two-bedroom FMR in Maryland is $1,875, so ZIP 20855 is 56% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 20855
BedroomsFY 2027Change90–110% range
Studio$2,530+7.7%$2,277–$2,783
1BR$2,640+9.1%$2,376–$2,904
2BR$2,920+8.1%$2,628–$3,212
3BR$3,720+9.1%$3,348–$4,092
4BR$4,380+9.2%$3,942–$4,818

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 20855
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$2,530$2,640$2,920$3,720$4,380
FY 2026$2,350$2,420$2,700$3,410$4,010
FY 2025$2,400$2,450$2,760$3,450$4,070
FY 2024$2,090$2,120$2,410$3,000$3,550
FY 2023$1,850$1,880$2,140$2,680$3,190

Two-bedroom rent in nearby Montgomery County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 20855
20848$2,470−15.4%
20849$2,470−15.4%
20850$2,990+2.4%
20851$2,370−18.8%
20852$3,080+5.5%
20853$2,300−21.2%
20854$3,660+25.3%
20855Current$2,920—
20857$2,470−15.4%
20859$2,470−15.4%
20860$2,590−11.3%
20861$2,470−15.4%

Questions about ZIP 20855 rents

How much will Section 8 pay for a two-bedroom in ZIP 20855?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $2,920, that basic range is $2,628 to $3,212 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 20855 in?

ZIP 20855 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 20855 for FY 2027?

The two-bedroom FMR rose 8.1%, from $2,700 in FY 2026 to $2,920 in FY 2027. Since FY 2023 it has risen 36.4%.

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