20878

ZIPSAFMR

Montgomery County, MD

ZIP Investment Score

96Above average

095130300

BR	FMR	Eff. Rent	3Y CAGR
0 BR	$2,310	$1,850	7.7%
1 BR	$2,410	$1,940	8.6%
2 BR	$2,670	$2,510	7.8%
3 BR	$3,400	$3,140	8.7%
4 BR	$4,010	$3,750	8.5%
5 BR	$4,612	Not available	8.5%
6 BR	$5,303	Not available	8.5%
7 BR	$6,099	Not available	8.5%
8 BR	$7,014	Not available	8.5%

Purchase Price Calculator

Maximum purchase price

$311,068

Cost breakdown

+Likely effective rent$2,510

HUD FMR$2,670

Market rentUsed$2,510

Est. payment standard (96%)$2,570

-Principal and interest-$1,573

Loan amount$248,855

Down payment$62,214

Rate6.50%

Term30 years

-Operating costs-$737

Property taxes-$311

Insurance-$175

Utilities$0

HOA$0

Management-$251

=Target cash flow+$200

Calculation mode

BedroomsCash-flow target

Down payment methodDown payment %

HOA / mo

Utilities methodUtilities amount

Management methodManagement % of rent

Hold period projections

Annual appreciation rate

3-year hold

+$40,034(64.3% ROI)

Projected value

$334,987

Return breakdown

Property appreciation+$23,918

Loan principal paid down+$8,916

Rental cash flow+$7,200

5-year hold

+$68,776(110.5% ROI)

Projected value

$351,945

Return breakdown

Property appreciation+$40,877

Loan principal paid down+$15,899

Rental cash flow+$12,000

10-year hold

+$149,011(239.5% ROI)

Projected value

$398,194

Return breakdown

Property appreciation+$87,125

Loan principal paid down+$37,885

Rental cash flow+$24,000

Public Housing Authority

Rolodex

Market Alignment

Studio

1.25ratio

FMR$2,310

Market$1,850

vs market+$460

FMR is above market; underwrite to market rent.

1.25

1 BR

1.24ratio

FMR$2,410

Market$1,940

vs market+$470

FMR is above market; underwrite to market rent.

1.24

2 BR

1.06ratio

FMR$2,670

Market$2,510

vs market+$160

FMR is near market; voucher and private rents are aligned.

1.06

3 BR

1.08ratio

FMR$3,400

Market$3,140

vs market+$260

FMR is near market; voucher and private rents are aligned.

1.08

4 BR

1.07ratio

FMR$4,010

Market$3,750

vs market+$260

FMR is near market; voucher and private rents are aligned.

1.07

0.700.800.901.001.101.201.30aligned range

Historical

FY 2023-2027

FMR: FY2027
Market rent: last ~365 days
Property value: --
Tax rate: --
Mortgage rate: --

ZIP 20878 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 20878 (Gaithersburg, MD) is $2,670 a month. That is up 10.8% from $2,410 in FY 2026. Gaithersburg 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, 20878 has the 18th-highest two-bedroom rent (county range $1,200–$3,660). The median county two-bedroom FMR in Maryland is $1,875, so ZIP 20878 is 42% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 20878
Bedrooms	FY 2026	FY 2027	Change	90–110% range
Studio	$2,100	$2,310	+10.0%	$2,079–$2,541
1BR	$2,160	$2,410	+11.6%	$2,169–$2,651
2BR	$2,410	$2,670	+10.8%	$2,403–$2,937
3BR	$3,040	$3,400	+11.8%	$3,060–$3,740
4BR	$3,580	$4,010	+12.0%	$3,609–$4,411

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 20878
Fiscal year	Studio	1BR	2BR	3BR	4BR
FY 2027	$2,310	$2,410	$2,670	$3,400	$4,010
FY 2026	$2,100	$2,160	$2,410	$3,040	$3,580
FY 2025	$2,070	$2,110	$2,380	$2,980	$3,510
FY 2024	$1,850	$1,880	$2,130	$2,650	$3,140
FY 2023	$1,720	$1,750	$1,990	$2,490	$2,970

Two-bedroom rent in nearby Montgomery County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code	2 bedroom	vs. 20878
20871	$2,870	+7.5%
20872	$2,120	−20.6%
20874	$2,420	−9.4%
20875	$2,470	−7.5%
20876	$2,540	−4.9%
20877	$2,380	−10.9%
20878Current	$2,670	—
20879	$2,320	−13.1%
20880	$2,520	−5.6%
20882	$2,030	−24.0%
20883	$2,470	−7.5%
20884	$2,470	−7.5%

Questions about ZIP 20878 rents

How much will Section 8 pay for a two-bedroom in ZIP 20878?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $2,670, that basic range is $2,403 to $2,937 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 20878 in?

ZIP 20878 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 20878 for FY 2027?

The two-bedroom FMR rose 10.8%, from $2,410 in FY 2026 to $2,670 in FY 2027. Since FY 2023 it has risen 34.2%.

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 rent Gaithersburg, MD fair market rent MD statewide rents What is SAFMR?Data sources