Location: Winchester, VA | Metro: Winchester, VA-WV MSA
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 | $1,130 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,250 | $234,413 | 0.53% | F |
| 2BR | $1,590 | $282,645 | 0.56% | F |
| 3BR | $2,000 | $379,839 | 0.53% | F |
| 4BR | $2,660 | $533,400 | 0.5% | F |
| 5BR | $3,086 | $630,492 | 0.49% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 22602, Winchester, VA, stands at $101,398. This figure suggests a relatively affluent area, but when it comes to rental affordability, the picture changes. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,952 per month. In comparison, the Fair Market Rent (FMR) set by HUD for the fiscal year 2024 is $1,480.
This discrepancy highlights a significant affordability gap for renters. A household earning the median income would find it challenging to sustain the market rate of $1,952, especially considering other living expenses. The HUD FMR of $1,480 is a benchmark used for determining housing assistance payments, including Section 8 vouchers, which means that a substantial portion of renters might rely on such assistance to cover their housing costs.
With 19.3% of the population being renters and a total population of 32,840, the competition among landlords in this area could be fierce. Landlords who set their rents closer to the FMR rather than the ZORI might attract more tenants, particularly those who qualify for housing assistance programs. Given the disparity between the market rate and the FMR, there is a notable segment of the rental market that could only afford housing through subsidized programs.
The takeaway for landlords is clear: focusing on cash-paying tenants willing to meet the higher market rates may limit your pool of potential renters. On the other hand, accepting Section 8 vouchers at the HUD FMR can open up a larger market, ensuring steady occupancy and a reliable source of income. This strategy aligns with the reality of an affordability gap, where many households cannot afford the market rate without financial assistance.
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.