1st Advantage MortgageA DSCR loan in Alexandria turns on rent versus payment. Citywide medians from the Census are $2,089 a month for rent, $735,100 for home value and $7,024 a year for real estate taxes.
Alexandria rental market at a glance
For Alexandria, the latest five-year ACS shows a median gross rent of $2,089 (well above the Virginia median of $1,579) and a median owner-occupied value of $735,100 (well above the Virginia median of $383,700). The gross rent-to-value ratio for Alexandria works out to 3.4% (twelve months of median rent divided by median value), a thin gross ratio, which tells you purchase prices are high relative to rent. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Virginia | Alexandria | Difference |
|---|---|---|---|
| Persons per household | 2.52 | 2.04 | |
| Share in 2-4 unit buildings | 4.5% | 4.3% | -5% |
| Share of homes detached | 61.3% | 13.9% | -77% |
| Long commuters, 45 min plus | 17.6% | 18.0% | +2% |
| Workers on their own account | 8.6% | 7.5% | -12% |
| Renters paying 30%+ of income | 48.5% | 45.3% | -7% |
| Units sitting vacant | 8.7% | 5.9% | -32% |
| Typical construction year | 1984 | 1974 | |
| Annual rent divided by value | 4.9% | 3.4% | -31% |
| Households that rent | 32.7% | 57.9% | +77% |
| Tax as a share of home value | 0.73% | 0.96% | +31% |
| Annual property tax bill, median | $2,790 | $7,024 | +152% |
| Typical owner-occupied value | $383,700 | $735,100 | +92% |
| Typical monthly rent | $1,579 | $2,089 | +32% |
| Residents (Census estimate) | 8,705,170 | 156,976 |
Renters occupy 57.9% of Alexandria's occupied homes, well above the Virginia median of 33%, so tenant demand is deep and investors compete mainly on condition and location. Median household income is $119,681, well above the Virginia median of $93,170, and 45% of renter households pay 30 percent or more of income on rent.
The kind of housing in Alexandria
Buildings with two or more units make up about 65% of Alexandria's housing, including 4% in two to four unit buildings and 19% in buildings of five to 19 units. The median home was built in 1974, a middle-aged stock where roofs, HVAC and water heaters are the main repair items.
The Census counts 6% of Alexandria housing units as vacant, with a rental vacancy figure of 4.1%.
What stands out in Alexandria
A 3.4% gross ratio leaves little margin in Alexandria. Every dollar of insurance, tax and association dues matters, and some deals work only with lower leverage. With a 1974 median build year, the question for each property is when the roof and HVAC were last replaced. Renter-heavy markets like Alexandria favor investors with a clear tenant profile, whether workers, students or families.
Taxes and risk in Alexandria
Property taxes in Alexandria run a median $7,024 a year for owners, well above the Virginia median of $2,790. As a share of median value, that is about 0.96%. That is about 28% of a year of median rent gone to taxes before the loan is even counted.
FEMA's National Risk Index (version 1.20, December 2025) rates Alexandria County as relatively low overall for natural hazard risk, with strong wind (relatively high), heat waves (relatively moderate) and riverine flooding (relatively moderate) among its leading hazards.
| Hazard in Alexandria County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Heat waves exposure | Relatively Moderate |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
A Alexandria landlord policy is priced on roof, age, wiring and location, and the annual premium divided by twelve lands in the payment the lender tests.
A worked DSCR test for Alexandria
Worked through with this city's own medians: rent of $2,089 against taxes of about $585 a month leaves $1,504 for principal, interest, insurance and dues at a 1.00 ratio, and $1,086 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
Rental rules for Alexandria, VA
For Alexandria, treat local rental rules as an open question to close before you offer. Ask the city and the independent city of Alexandria about landlord registration, inspections and short-term rental permits, and check association documents too. On lodging taxes, a Alexandria host should read this first. When a booking platform handles the reservation it collects the tax on the whole charge, and when a host books directly the host collects and remits.
A Alexandria landlord must handle the deposit within 45 days after move-out under Virginia law.
Neighbors of Alexandria by the numbers
Prices in the comparison range from $407,600 in Waldorf to $895,000 in Arlington, with Alexandria at $735,100.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Rockville | 47% | $6,719 | $682,300 | 67,671 | $2,274 |
| Waldorf | 25% | $3,935 | $407,600 | 82,943 | $1,995 |
| Silver Spring | 62% | $5,360 | $643,300 | 81,462 | $1,913 |
| Arlington | 59% | $8,153 | $895,000 | 236,254 | $2,322 |
| Alexandria | 58% | $7,024 | $735,100 | 156,976 | $2,089 |
Workforce and demand drivers in Alexandria
The self-employed share of the workforce is 7.5%, and those owners tend to be exactly the buyers DSCR financing was built for. Around the edges, government workers are about 25% of employment, 66% of adults hold a bachelor's degree or higher and 18% of commuters travel 45 minutes or more.
Higher education in and around Alexandria includes Virginia Polytechnic Institute and State University, Virginia Commonwealth University, The George Washington University and Northern Virginia Community College, which feeds demand for student, staff and faculty housing near campus. For getting around, Alexandria has interstate access via I-395, I-95 and I-495, which matters to commuters and to out-of-town owners planning a visit.
Next steps for a Alexandria purchase
Run the Alexandria rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Virginia markets
- All Virginia DSCR loans
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- DSCR loans in Rockville, MD
- Every market we cover
Where these facts come from
- Virginia security deposit statute (Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7))
- State rule cited for Alexandria hosts: Virginia Tax, accommodations
- Lodging tax reference: Va. Code 58.1-3819
- Census ACS profile behind the Alexandria figures
- FEMA hazard ratings for Independent city
- Wikipedia: Alexandria, Virginia
We took the Alexandria data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Virginia sections. Our check date is October 2026, so look for newer Alexandria rules before you commit.
A short buyer checklist
On a Alexandria purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Alexandria?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Alexandria median rent is $2,089.
What payment can a Alexandria rent support?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Alexandria median rent of $2,089, a 1.25 ratio allows about $1,671 in total payment, of which roughly $585 a month goes to median taxes.
What do Alexandria owners pay in real estate taxes?
The median bill is $7,024, an effective rate near 0.96%. Because the independent city of Alexandria may reassess at sale, use an estimate on the new price when you run the ratio.
Is short-term rental income allowed for a Alexandria DSCR loan?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Alexandria and any HOA permit stays under 30 days, and that you can register for Virginia lodging tax.
When must a Alexandria landlord return a deposit?
Return: 45 days. Statute: Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7). Confirm current text before you rely on it.
Is flood or storm risk a concern for a Alexandria rental?
FEMA's index puts the county at relatively low overall. A lender cares about the premium and any flood requirement, which are address-specific in Alexandria.
Should a Alexandria rental be bought in an LLC?
An individual can borrow too. If you prefer an entity for the Alexandria purchase, expect to provide formation documents and sign a personal guaranty.