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WASHINGTON, DC-Rockville, Fairfax County and Loudoun County are among the areas multifamily investors with a long range outlook might want to consider in the DC area, according to a new report by Marcus & Millichap. There are still numerous opportunities for multifamily investment here, the report says. One avenue, of course has been the condo conversion route. Like it other markets though condo conversions have fallen off in the DC area this year.

Marcus & Millichap suggests that investors concentrate instead on the huge demand for rental housing space that has built up over the last few years as more people have been priced out of the single family and condo market. The median price for condos in the area, it notes, is $350,000 per unit, which does little to fulfill unsatisfied housing demand.

Rents meanwhile, have risen 4.4% year-over-year to $1,167 per month and were expected to reach $1,186 per month in the third quarter. The firm believes rents will continue to increase at a measured pace. "Projected monthly asking rents of $1,244 at year end will be 4% more than the year before, while effective rents are forecast to advance 4.4% to $1,195 per month."