The rent is not a projection. The approval already exists.
Most investment listings ask you to believe a pro forma rent. This one starts from a number the DC Housing Authority has already run through rent reasonableness and approved — the step that rejects more than half of all voucher submissions in this city.
Everything on the owner and unit side is cleared. What remains is placing a household, which is a sourcing exercise rather than an approval risk.
- The payer is the federal government. Housing Assistance Payments arrive monthly under a HAP contract, not from a tenant's paycheck.
- Vacancy risk is structurally low. Large-bedroom units are scarce in DC and voucher households holding 5BR and larger vouchers have very few options.
- DCHA runs one of the most generous payment standards in the country — 187% of Fair Market Rent, applied districtwide rather than by ZIP.
- Turnover is slower than market-rate. A family that finds a home this size does not move casually.
Projected returns at the asking price
| Basis | Annual | Return on $439,999 |
|---|---|---|
| Gross scheduled rent | $83,880 | 19.06% gross |
| NOI at 30% operating expenses | $58,716 | 13.34% cap |
| NOI at 35% operating expenses | $54,522 | 12.39% cap |
| NOI at 40% operating expenses | $50,328 | 11.44% cap |
Expense ratios are illustrative bands, not the seller's actuals. Taxes, insurance, the $150 monthly HOA, maintenance and management vary by operator. Run your own.
What that cap rate means here
DC residential typically trades in the 5% to 7% cap range. At a 35% expense load this asset pencils near 12.39%. Put differently, the same NOI at conventional DC cap rates implies:
| If valued at | Implied value |
|---|---|
| 7% cap | $778,886 |
| 8% cap | $681,525 |
| 9% cap | $605,800 |
| 10% cap | $545,220 |
| Asking | $439,999 |
What is confirmed, and what is not
Confirmed
The unit is fully renovated across three levels. DCHA has completed rent reasonableness. The property is available immediately and is offered at $439,999.
Not yet in place — and it matters to your underwriting
No HAP contract is executed. Every return figure on this page is projected from the approved rent, not from an in-place tenancy. A buyer is acquiring the approval and the unit, not a seasoned rent roll.
Appraisals here follow comparable sales, not yield. Congress Heights townhouse comps have recently run nearer $210 per square foot; this asset is offered at about $266. A financed buyer should expect the appraisal to be argued on comps and plan accordingly. This is most straightforward as a cash acquisition.
Bedroom count is verified at inspection. DCHA confirms each designated bedroom meets District standards for size, closet, window and egress at the HQS inspection. Diligence should include walking the unit against that checklist.
We would rather you find these caveats here than three weeks into diligence. The numbers above are strong enough to survive being stated honestly.
