Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,680 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $292,148 | 0.6% | F |
| 2BR | $1,940 | $331,684 | 0.58% | F |
| 3BR | $2,470 | $455,088 | 0.54% | F |
| 4BR | $2,910 | $576,405 | 0.5% | F |
| 5BR | $3,376 | $670,476 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 22401 in Fredericksburg, VA, stands out due to its unique demographic and economic characteristics. With a population of 28,731 residents, 60.2% of whom rent their homes, it reflects a community heavily reliant on rental properties. The median income in this area is $86,230, which is relatively high compared to the national average, indicating a prosperous local economy. However, the median home value of $466,786 suggests that homeownership is quite expensive, further emphasizing the reliance on rental housing.
For landlords and small-portfolio investors, understanding the voucher economics is crucial. The Fair Market Rent (FMR) for ZIP 22401, set at $1,490 for the fiscal year 2024, is notably lower than the market rent, known as the ZORI (Zillow Rent Index), which stands at $1,969. This discrepancy means that landlords who accept Section 8 vouchers will receive less than the market rate for their properties, potentially impacting their investment returns. Despite this, the high percentage of renters and the significant gap between FMR and ZORI indicate a substantial demand for affordable housing options in the area.
Evaluating the data signature of ZIP 22401, it appears stable rather than transitional. The high median income supports a steady demand for rental properties, while the significant disparity between the FMR and the ZORI suggests a robust market for both subsidized and market-rate rentals. Landlords should consider the balance between accepting Section 8 vouchers to fill units and seeking higher rents from market-rate tenants to maximize their investment potential.
In summary, ZIP 22401 presents a clear opportunity for those willing to navigate the dynamics between affordable housing and market rates. With a strong rental market and a sizable portion of residents relying on rental properties, landlords can leverage the existing demand to ensure consistent occupancy and revenue streams. However, they must also be prepared to manage the financial implications of accepting Section 8 vouchers, which pay below market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.