© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 1 of 6

Multifamily Market Commentary – November 2017

Affordable Housing Drives Development East of the Anacostia River

Although Washington, DC has the nation’s second-highest level of new multifamily units underway, new development is not 

evenly distributed throughout the nation’s capital. One glaring example is the lack of new market rate multifamily projects 

that are located in Wards 7 and 8, both of which are situated east of the Anacostia River. Many of the District’s residents in 

Wards 7 and 8 have lower educational attainment than residents of the District as a whole, and many live below the poverty 

line. Due to the uneven distribution of development, residents east of the Anacostia River have not been able to benefit 

from the job growth and economic benefits usually brought about by local commercial investment.

Educational Attainment East of the 

Anacostia Lags the Larger Metro

Educational attainment is lower east of the 

Anacostia River than in the overall District. As 

shown in the table to the right, 17 percent of 

residents in Wards 7 and 8 did not graduate 

from high school, compared to 10.7 percent for 

all of Washington, DC. A significant proportion 

of residents of Wards 7 and 8 – about 40 

percent – stopped their education at high 

school, compared to just 18 percent in 

Washington, DC as a whole. Fewer than 17 

percent of the residents of Wards 7 and 8 have 

a college degree, compared to more than 54 

percent of all District residents. 

Household Incomes are Much Lower East of 

the Anacostia

As shown in the second adjacent table, 

household income is lower and unemployment 

is higher in Wards 7 and 8 than in the District 

overall. The median household income in Ward 

7 is about $39,000 and is slightly higher than

Ward 8’s $31,000. However, both wards are 

still well below the Washington, DC median 

household income of $71,000.

The unemployment rate east of the Anacostia 

is about twice as high as it is for the District as 

a whole. As a result, the poverty rate in Ward 8, 

which is at 35.3 percent, is more than twice the percentage of the overall District. The situation is even more serious for the 

young as over 39 percent of residents under age 18 live in poverty east of the Anacostia. This could have has serious 

implications for the next generation.
© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 2 of 6

Crime Rates Decrease in the District

Overall, crime rates have been declining in Washington, DC. In fact, the District’s total All Crime Rate declined by 8 percent 

year over year as of September 2017, and homicides declined by 22 percent. As shown in the table below, the overall crime 

rate in Ward 8 also improved and declined by 8 percent year over year, as of September 2017, matching the decrease for 

the entire District.

Washington, DC Annual Crime Statistics - September 28, 2017

Source: District of Columbia Police Department 

https://mpdc.dc.gov/node/197622

Homicide Rate Decreases 

As of September 2017, on a year-over-year basis the number of homicides in Ward 8 declined by 2 percent to 47 and the 

number of homicides in Ward 7 fell by 55 percent to 21.

Property Crime Increases

Property crime, which can include theft of automobiles, theft from automobiles, and burglary, did increase east of the 

Anacostia – climbing 4 percent year over year in Ward 8 and 7 percent in Ward 7.

Elevated Crime Rates Deter Investment and Growth

While property crime east of the Anacostia River only represented 20 percent of the total for the District, violent crimes were 

somewhat higher, representing about 36 percent of the total for the District. This type of crime can leave local residents 

feeling vulnerable and deter businesses from moving east of the Anacostia since potential employers might have concerns 

about the safety of their employees. The elevated level of property crimes is also likely detrimental to the economic, 

commercial, and residential growth of Wards 7 and 8 since it can negatively impact the quality of life of the residents.

Offense District of 

Columbia

% Change 

(YOY)

Ward 8 % Change 

(YOY)2

Ward 7 % Change 

(YOY)3

Homicide 115 -22% 47 -2% 21 -55%

Violent Crime-Total 4,571 -26% 916 -32% 1,031 -9%

Property Crime-Total 30,033 -4% 2,707 4% 3,384 7%

All Crime-Total 34,604 -8% 3,623 -8% 4,415 3%
© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 3 of 6

Uneven Distribution of Multifamily Subsidized Units

Households in Wards 7 and 8 tend to be renters by necessity. As of May 2016, an estimated 62 percent and 79.5 percent

of occupied housing was inhabited by renters in Wards 7 and Ward 8, respectively, compared to less than 59 percent for 

the District as a whole.

Given the low incomes of many residents located east of the Anacostia, it is no surprise that Wards 7 and 8 need subsidized 

rental housing. In fact, these two wards have almost half of the total subsidized rental housing stock in Washington, DC, 

with an estimated 19,600 units out of a total 40,100 units, as shown in the table below. In addition, these subsidized units 

represent a substantial share of the apartment rental stock in each ward. As shown in the chart below, almost 43 percent 

of units are subsidized in Ward 7, and 58 percent of multifamily rental units are subsidized in Ward 8.

Number of Assisted Units and Projects in Washington, DC, by Ward2

Projects Subsidized Units1 Total Occupied 

Rental Units 

(Subsidized and 

Non-Subsidized)

Percent of Ward 

Subsidized

Total 314 40,088 152,278 26.33%

Ward 1 59 4,765 22,162 21.50%

Ward 2 16 1,930 25,250 7.64%

Ward 3 3 369 18,649 1.98%

Ward 4 15 790 11,730 6.73%

Ward 5 34 4,667 15,915 29.32%

Ward 6 50 7,943 20,360 39.01%

Ward 7 45 7,097 16,558 42.86%

Ward 8 92 12,527 21,654 57.85%

1That is, units receiving one or more of the following forms of subsidy such as Section 8, Low Income Housing Tax Credits (LIHTC) 

(with or without tax exempt bonds), a below market U.S. Department of Housing and Urban Development (HUD)-insured mortgage, 

HOME or Community Development Block Grant (CDBG) funds (administered by HUD), D.C. Housing Production Trust Fund monies, 

Section 202/811 funds, and other types of subsidy. 

2Subsidized units were not separated between rental and homeownership. For the purpose of this analysis, “% of Ward Subsidized” 

was only compared to occupied rental units, as the number of subsidized homeownership units is marginal. These data do not explicitly 

account for Housing Choice Vouchers and Local Rent Supplement programs independent of the project-based subsidies in the catalog.

Source for Table and Footnotes: District of Columbia Housing Preservation Strike Task Force Final Report, November 2016

Rents Lower East of the Anacostia

The average asking rent for market rate multifamily units 

located in Washington, DC is estimated at $2,000 per 

month, according to CoStar, Inc. In some of the District’s 

submarkets, such as Dupont Circle and Shaw, the average 

multifamily asking rent is even higher at $2,400. By 

comparison, average asking rents are $1,400 in Ward 7 and 

$1,100 in Ward 8. 

Nevertheless, many Wards 7 and 8 residents still have 

difficulty affording these rents. Multifamily rental units are 

deemed affordable when renters spend no more than 30 

percent of income on rent and utilities. Renters spending 

more than this amount are considered to be cost-burdened. 

Renters in Wards 7 and 8 would have to spend 43 percent 

of the median household income to rent a typical marketrate unit, thereby making those households cost-burdened. 
© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 4 of 6

Elevated Levels of Multifamily Development in Washington, DC . . . 

While there are over 27,000 apartment units underway in the greater Washington, DC metro area, most of the new 

multifamily construction is located in more affluent submarkets, as seen in the map below. For instance, the Tysons Corner 

submarket has five projects with almost 2,200 units underway. In the District, the more affluent Capitol Hill submarket and 

the adjacent Southwest submarket have about 15 projects under construction, with over 3,600 multifamily rental units 

expected to complete and be delivered over the next 18 months.

Multifamily Rental Units Underway – Washington, DC

. . . But Not Much East of the Anacostia River

In contrast, as shown in the map above, there is less new multifamily construction currently underway in Wards 7 and 8, 

with only nine multifamily projects consisting of about 1,400 units located east of the Anacostia River. The construction

underway has been spurred by the development of affordable housing. 

There has been little development in this area over the past several years, even though an enormous renovation has been 

planned for the massive 350-acre site of the former St. Elizabeths Hospital. The property is divided into two campuses. The 

West Campus, owned by the federal government, will be used to consolidate the headquarters for the Department of 

Homeland Security. However, to date, only the new Coast Guard headquarters has been completed. 

Plans for the 183-acre East Campus includes housing the headquarters for the Federal Emergency Management Agency. 

The remainder of the property will be developed as a mixed-use, mixed-income, walkable community. The development 

project is being overseen by the District of Columbia’s Office of the Deputy Mayor for Planning and Economic Development, 

which includes the construction of a new sports and entertainment complex for the Washington Mystics, a professional 

women’s basketball team.
© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 5 of 6

Multifamily Rental Projects Underway East of the Anacostia

Source: Dodge Data & Analytics - Dodge Pipeline. *Note: Project “18” is under “13” on map

Note: Maple View Flats and City View are two Ward 8 projects that are part of Mayor Muriel Bowser’s DC Housing Preservation Strike Force 

initiative which helps finance 13 projects in DC with the aim of redeveloping 1,200 units of affordable housing. Project Name Units Owner Other Notes:

9 South Capitol Streen Apartments 200 Affordable City Interests LLC Sponsored by DC 

housing authority

5-story, mixed-use building with 200 units 

affordable at 60% of AMI and under; 78 units 

affordable at 30% of AMI.

13 2255 Martin Luther King Ave SE 71 units

Curtis Investments 

(leading landowner in 

anacostia with a dozen 

properties)

Four Points LLC

(OwnerBuilder/Developer)

6-story, mixed-income rental, 71 unit multifamily 

project. 

14 Capitol Gateway Marketplace 

Apartments (w/Retail & Parking) 346 Units Wood Partners (OwnerBuilder/Developer) market rate

13-story, mixed-use concrete building, 346 

apartment units, 3 levels of underground 

parking; anchored by Walmart.

16 City View Project at 2850 

Douglass Place SE.

58 affordable 

units

WC Smith(OwnerBuilder/Developer)

Part of the St. 

Elizabeths East 

redevelopment project.

City View Apartments is a 63,230 sf, 58-unit, 

wood frame on concrete podium building, 

composed of 3 floors of units and 1 level of 

below grade parking. 

17 Deanwood Hills Apartments 150 affordable 

units

Pennrose 

Properties(OwnerBuilder/Developer)N/A

150 units of affordable housing on the former 

trash transfer site which comprises two acres of 

city-owned land.

18* Maple View Flats Mixed Use 114 affordable 

units

Chapman Development 

Company LLC N/A

The apartments (82 one-bedrooms, 24 twobedrooms and 8 three-bedrooms) will be 

affordable to households earning up to 60% 

AMI.

21 Skyland Town Center Residential 

- Retail - Block 2

128 Affordable 

MF/ 42 SF Community of Hope Developer: Horning Brothers

Mixed-income development including rental and 

for-sale units and a non-profit community 

services campus.

22 SOME Training/Office 

Facilities/Housing & Parking 202 affordable So Others Might Eat N/A

7-story, mixed-use building with office space, 

educational space, 182 affordable apartments 

and 20 transitional units.

23 Stanton Square Residential Units 128 Affordable 

MF/ 42 SF Community of Hope Developer: Horning Brothers

Mixed Income Development including rental 

and for-sale units and a non-profit community 

services Campus; Redevelopment of St. 

Elizabeth's campus.
© 2017 Fannie Mae. Trademarks of Fannie Mae. 11.14.2017 6 of 6

Subsidized Affordable Multifamily Leads the Way East of the Anacostia

Of the nine multifamily developments currently underway east of the Anacostia, at least seven are heavily subsidized and 

composed largely of rent-restricted housing.

One multifamily development currently underway on the St. Elizabeths East Campus is City View, which will create 58 units 

of affordable multifamily rental housing. City View is one of 13 projects awarded financing by the DC Housing Preservation 

Strike Force. This 18-member team, chaired by the director of the Department of Housing and Community Development, is 

composed of housing experts and other public stakeholders. Another project selected by the Strike Force and currently 

underway is Maple View Flats, which will preserve 114 apartments affordable to residents earning up to 60 percent of the 

area median income (AMI).

The District is employing a variety of financing mechanisms to develop more affordable housing. For instance, the currently 

underway South Capitol Street Apartments is partially funded by the Local Rent Supplement Program. The program is also 

funded by the Washington, DC government through its Housing Authority and is modeled on the federal Housing Choice 

Voucher Program. The Local Rent Supplement Program provides “tenant-based” vouchers to individuals and families using 

the same criteria as the federal Housing Choice Voucher Program. The South Capitol Street Apartments project is expected 

to create an estimated 195 units affordable to households earning 60 percent of AMI or less, with 78 of these units being 

affordable to the lowest income households – those earning no more than 30 percent of AMI.

Non-profits and other community organizations are also spurring development east of the Anacostia River. Stanton Square, 

which broke ground earlier this year, is one such example and is a collaborative project by Martha’s Table, Community of 

Hope, the Horning Family Fund, and the Horning Brothers. The project is a mixed-income housing development that 

includes both rental and for-sale housing units, of which 128 are slated to be affordable rental housing units, with 42 market 

rate townhomes. 

A Holistic Approach Needed

Many residents east of the Anacostia River have not benefited as fully from the metro’s recent positive economic growth as 

residents of other sections of the District. While critically important for helping these residents, simply building new affordable 

housing will not solve the area’s issue of persistent poverty. A more holistic approach – one involving improved education, 

better access to healthcare, less crime, and expanded, reliable, and safe public transportation, to name a few – will all be 

required to help the District’s most economically vulnerable residents benefit from the same prosperity available to others 

in the nation’s capital.

Tanya Zahalak

Senior Multifamily Economist

Multifamily Economics and Market Research

November 2017

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Multifamily Economics and Market Research 

(MRG) group included in these materials should not be construed as indicating Fannie Mae's business prospects or 

expected results, are based on a number of assumptions, and are subject to change without notice. How this information 

affects Fannie Mae will depend on many factors. Although the MRG bases its opinions, analyses, estimates, forecasts, and 

other views on information it considers reliable, it does not guarantee that the information provided in these materials is 

accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these 

views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published 

by the MRG represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie 

Mae or its management.