Location: Orange County, VA | Metro: Orange 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 | $1,550 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,620 | $403,572 | 0.65% | D |
| 4BR | $2,930 | $508,749 | 0.58% | F |
U.S. Census Bureau data (2024)
The investment landscape for ZIP 22542 presents several challenges that could impact a landlord's financial stability when participating in the Section 8 program. Tenant turnover is a significant concern, with the market rent at $2,038 being notably higher than the Fair Market Rent (FMR) of $1,550 for fiscal year 2026. This discrepancy suggests that tenants who qualify for Section 8 vouchers might struggle to afford market-rate properties, leading to frequent moves and higher vacancy rates. Additionally, the vacancy exposure is heightened due to an unspecified number of days on the market (DOM), indicating potential difficulties in filling units promptly. The typical home value in ZIP 22542 stands at $381,520, while the median income is $108,031, which may not be sufficient to cover maintenance costs, especially if deferred maintenance accumulates over time.
Despite these risks, the area boasts a high concentration of renters, with 7.8% of the population being renters. High renter density often correlates with a robust demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of income for landlords. The presence of many renters also signals a competitive rental market, where Section 8 vouchers can serve as a valuable tool for securing tenants quickly.
In summary, the combination of high market rents relative to FMR, potential vacancy issues, and limited financial buffer for maintenance expenses poses notable risks. However, the strong renter base and likely high voucher demand mitigate some of these concerns. Given these factors, the overall risk for a first-time Section 8 landlord in ZIP 22542 is moderate.
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.