Location: Caroline County, VA | Metro: Caroline County, VA
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 | $780 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $259,627 | 0.44% | F |
| 3BR | $1,560 | $366,035 | 0.43% | F |
| 4BR | $1,890 | $418,922 | 0.45% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 22427, located in Milford, Virginia, within Caroline County, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for the area, set at $1,010 for the fiscal year 2026, slightly exceeds the current market rent of $978 as reported by the Census ACS. This indicates that voucher tenants will provide a marginal positive cash flow, making it an attractive option for investors looking to maintain profitability without relying solely on premium units.
To further assess the investment potential, consider the median home value of $365,781 in the region. The rent-to-price ratio can be calculated by dividing the annual rent ($978 x 12 months = $11,736) by the median home value. This results in a ratio of approximately 3.2%, suggesting that the rental market remains competitive relative to home ownership. However, the lack of data on the median days on market (DOM) and the percentage of homes that required price cuts indicate that the rent-versus-buy dynamics are stable, but specific insights into the housing market's liquidity and pricing flexibility are not available.
The strongest investor angle in ZIP 22427 is likely to be cash flow. Given the slight premium that voucher tenants bring over the market rent, combined with the stable rent-to-price ratio, investors can expect steady and reliable returns from their properties. This makes the area particularly appealing for those focused on generating income through rental properties rather than seeking rapid appreciation or long-term stability alone.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.