Location: Caroline 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 | $920 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $272,269 | 0.48% | F |
| 3BR | $1,810 | $355,495 | 0.51% | F |
| 4BR | $2,180 | $485,581 | 0.45% | F |
U.S. Census Bureau data (2024)
An investor might question whether the Fair Market Rent (FMR) of $1,180 for ZIP 22580 in fiscal year 2024 will sufficiently cover the mortgage on a $351,597 home. The answer depends on current mortgage rates and the investor's down payment. With typical mortgage rates around 5%, a $351,597 home financed at 80% would result in a monthly mortgage payment of approximately $1,800. This means that the FMR of $1,180 falls short by about $620 per month. However, it's important to note that this calculation does not include property taxes, insurance, and maintenance costs, which would further reduce the profitability.
The skepticism regarding renter demand at 12.6% is valid. While 12.6% indicates that a portion of the population is renting, it does not necessarily reflect the number of renters who qualify for Section 8 assistance. The median household income in ZIP 22580 is $90,524, which suggests that many residents can afford market-rate housing. However, the poverty rate of 8.0% implies a segment of the population that may rely on rental assistance programs such as Section 8.
Concerns over whether voucher amounts will keep pace with market rents of $1,182 are justified. The data does not provide a direct comparison between the current voucher amount and the FMR. However, historically, voucher amounts have lagged behind market rents, which could pose a challenge for landlords. If the voucher amount is less than the FMR, landlords may face a shortfall unless they can find tenants willing to pay the difference. This scenario requires careful consideration of the local rental market dynamics and the willingness of potential tenants to supplement their voucher payments.
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.