Location: Culpeper County, VA | 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 | $1,860 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,150 | $371,059 | 0.58% | F |
| 3BR | $2,740 | $409,370 | 0.67% | D |
| 4BR | $3,230 | $518,394 | 0.62% | D |
| 5BR | $3,747 | $602,547 | 0.62% | D |
U.S. Census Bureau data (2024)
Fredericksburg’s 22407 ZIP code, located largely in Spotsylvania County, is characterized by a sprawling suburban landscape with strong access to regional commerce. The area serves as a major employment hub, with the University of Mary Washington prominently anchoring the local economy and providing a steady stream of faculty and staff housing demand. This section of the region offers a blend of established residential neighborhoods and commercial corridors, making it a practical location for long-term residential investments.
From a purely numerical standpoint, the math reveals a tight squeeze for voucher landlords. The FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,970, yet current market rents (Zillow ZORI) sit higher at $2,015, creating a shortfall of $45 per month if you cap rent at the FMR standard. This gap must be weighed against a median home value of $465,359 and a median 2BR sale price of $373,663. With properties sitting on the market for a median of 53 days, investors face modest carrying costs before securing a tenant, meaning the FMR limit requires careful underwriting to ensure positive cash flow.
Despite the rent cap challenge, the tenant pool in 22407 is robust and qualified. The area boasts a median household income of $111,129, significantly above national averages, which suggests that even the 23.4% of residents who rent possess strong purchasing power. High-performing schools like Chancellor High School and Riverbend High School enhance the neighborhood’s appeal for families, potentially leading to longer lease tenancies and lower turnover rates for investors willing to accept the FMR rate.
The Section 8 verdict for 22407 leans toward stability and appreciation rather than aggressive immediate cash flow. While the $45 gap between market rate and the 2-bedroom FMR limits immediate yield, the high median income and institutional presence of the University of Mary Washington suggest a resilient market that protects asset value. Investors should view this area as a play for long-term capital preservation and consistent occupancy, leveraging the area’s desirability to offset the modest rent constraints.
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.