Hedge Research · R-MODEL

The Demand-Anchor Score

A ZIP within commuting range of a large military base and a major university and a semiconductor / tech employer inherits three independent, sticky streams of rental demand. We quantified that compounding effect for every ZCTA in the country — then asked, honestly, whether it predicts rent growth.
28,630 ZIPs · 6,236 demand anchors · exp-decay D0 = 30 mi · cKDTree spatial index · generated 2026-05-21

01The model

For every ZIP centroid we sum, over every nearby anchor, a normalized magnitude weighted by a distance decay.

Per-type proximity score — for anchor type t (base, college, fab):

S_t(zip) = Σ magnitude(a) × exp(−d / D0)

Headline score is diversity-weighted, because a raw sum just measures college density: demand_anchor_score = raw × (0.4 + 0.6 × types_present / 3). A ZIP with only one anchor type keeps 40% of its raw score; a true base+college+fab cluster keeps 100%. We also emit balanced_anchor_score, the geometric mean of the three components — zero unless all three legs are present — as the purest expression of the "compounding" thesis.

02Score distribution

3.04
Median score
7.19
Mean score
31.0
95th pctile
75.0
Max (Manhattan)
6,100
Triple-anchor ZIPs

The distribution is heavily right-skewed: half of all ZIPs score under 3, but a dense-metro tail runs to 75. 6,100 ZIPs (21%) sit inside the commute shed of all three anchor types at once — the "triple anchor" set.

03Top 10 by headline score

The headline ranking is dominated by Manhattan — the most college-dense square miles in America. This is honest but not very actionable: it mostly re-discovers "big expensive city".

#ZIPPlaceScore BaseCollegeFab Anchors ≤30mi
110016New York, NY (Murray Hill)74.990.8572.551.59309
210018New York, NY (Garment District)74.960.8572.511.59308
310036New York, NY (Times Square)74.950.8572.521.59308
410001New York, NY (Chelsea/Hudson Yards)74.940.8672.481.60310
510020New York, NY (Rockefeller Center)74.940.8472.531.58308
610010New York, NY (Gramercy)74.940.8672.481.59310
710011New York, NY (Greenwich Village)74.910.8872.421.61311
810017New York, NY (Midtown East)74.900.8472.481.57308
910003New York, NY (East Village/NYU)74.830.8872.341.61312
1010019New York, NY (Hell's Kitchen)74.800.8472.381.58307

04Top 10 by balanced score — the real clusters

Switch to the geometric-mean balanced score and a different picture emerges: the strongest balanced base+college+fab cluster in America is the Washington–Arlington corridor — the Pentagon and Fort Myer, a wall of universities, and the DC-metro tech HQ belt all inside one 30-mile shed.

#ZIPPlaceBalanced BaseCollegeFab
122209Arlington, VA (Rosslyn)4.924.3825.191.08
222211Arlington, VA (Fort Myer)4.914.4524.801.07
320006Washington, DC (Foggy Bottom/GWU)4.904.3725.571.06
420037Washington, DC (Foggy Bottom W)4.904.3425.621.06
522201Arlington, VA (Courthouse/Clarendon)4.904.3324.721.10
620036Washington, DC (Dupont Circle)4.894.3125.751.05
720004Washington, DC (Penn Quarter)4.894.4325.361.04
820005Washington, DC (Logan Circle)4.894.3425.691.05
920007Washington, DC (Georgetown)4.884.2425.641.07
1020009Washington, DC (Adams Morgan)4.874.2525.921.05

05Validation — does it predict rent growth?

We regressed each ZIP's 3-year ZORI rent CAGR (Apr 2023 → Apr 2026, 4,525 ZIPs with history) on the anchor score. The honest answer: barely.

0.123
Pearson r (headline)
0.015
R² linear (headline)
+0.46pp
Top vs bottom quintile
+0.0045
ΔR² over income

Verdict: weak signal, near-null. The demand-anchor score explains roughly 1.5% of the variance in 3-year rent CAGR. The correlation is positive and in the expected direction — the top quintile of anchor score grew rent about 0.46 percentage points faster per year than the bottom quintile — but the effect is small and easily swamped by metro-level factors. The balanced score is even weaker (r = 0.02): once you condition on having all three anchor types, the remaining variation is noise. Added to a model that already knows median household income, the anchor score lifts R² from 0.012 to 0.016 — a real but marginal +0.4 points of explanatory power.

Why so weak? Rent CAGR over a 3-year window is driven far more by supply elasticity, migration shocks and the interest-rate cycle than by the static presence of institutions. Anchors are durable — they keep a floor under demand for decades — but durability is a vacancy-risk story, not a growth story. The score is best read as a demand-stability indicator (low vacancy, resilient occupancy) rather than a rent-appreciation forecaster. We report this honestly: it is not a strong predictor of rent growth, and it should not be sold as one.

06What ships

R-MODEL.demand-anchor-score · Hedge Research · Anchors: megamap geo_index (bases / colleges / fabs). Centroids: Census ZCTA topojson. Rent CAGR validation: Zillow ZORI ZIP history. Distance math and validation R² reported honestly.