According to The Washington Post, analysts expect the rental housing market in the nation’s capital to have a stable year, with some additional rent growth driven by high demand and limited supply.

Rental managers may find limits on job growth and wage increases holding back rents, according to analysts looking at the national picture for the coming year. For the most part, however, the metro area is expected to do well.

The current market and future projections are firm enough that the city is seeing major interest from investors, the source reports. This includes both local capital and real estate investment trusts. The level of interest and declining cap rates has caused investment sale prices to jump, according to the source, reaching 2007 levels.

Some investors are flocking to multifamily for the same reason it was attractive to non-traditional investors in 2011, namely the fact that investment alternatives are performing weakly by comparison.

Class B investments are reportedly doing particularly well. If this year is better than 2011 for rentals, that would mark a trend beginning in 2010, since rental housing land sales increased in terms of both value and potential units from 2010 to 2011.