Location: Orange 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 | $1,450 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $305,448 | 0.55% | F |
| 3BR | $2,140 | $394,667 | 0.54% | F |
| 4BR | $2,520 | $597,484 | 0.42% | F |
| 5BR | $2,923 | $848,473 | 0.34% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,400 for ZIP 22551 in fiscal year 2024 can sufficiently cover the mortgage on a home valued at $459,144. To evaluate this, consider the typical mortgage rates and terms. A mortgage on a home priced at $459,144, assuming a 30-year fixed rate mortgage at an average interest rate of around 5%, would result in monthly payments that exceed $1,400. Thus, the FMR alone does not cover the mortgage payment, indicating that additional income sources or a down payment may be necessary.
The second objection concerns the level of renter demand in ZIP 22551, which stands at 12.2%. This percentage suggests that while there is some demand, it is relatively low compared to other areas. However, this figure must be contextualized within the broader real estate market of Spotsylvania, VA. A lower percentage of renters does not necessarily mean a lack of demand; it could reflect a preference for homeownership in the area. To ensure profitability, landlords should focus on providing quality rental properties that meet the needs of the local market.
A final concern is whether Housing Choice Vouchers will keep up with the market rents, currently estimated at $2,367. The voucher amount is determined by the government and can vary based on location and household size. In ZIP 22551, vouchers may not cover the full market rent, potentially leaving landlords to absorb the difference. While this poses a risk, it's important to note that vouchers also provide a steady stream of tenants who are less likely to default on rent due to financial assistance. Landlords should review the specific voucher amounts available and assess if they can balance the gap between the voucher and the market rent.
In summary, while the FMR of $1,400 may not fully cover the mortgage on a $459,144 home, there are strategies to mitigate this, such as increasing equity through a larger down payment. The 12.2% renter demand suggests a moderate market but requires careful property management to attract and retain tenants. Lastly, Housing Choice Vouchers may not cover the full $2,367 market rent, necessitating a thorough understanding of the voucher system and tenant selection process to maintain profitability.
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.