Location: Washington-Arlington-Alexandria, DC | 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 | $1,430 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $349,967 | 0.47% | F |
| 3BR | $2,100 | $517,253 | 0.41% | F |
| 4BR | $2,480 | $681,568 | 0.36% | F |
| 5BR | $2,877 | $740,921 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 22611, Berryville, Virginia, provides a clear snapshot of potential rental income versus property values. For an annualized two-bedroom Fair Market Rent (FMR) under Section 8 at $1400 per month, the annual rental income would be $16,800. Against the median home value of $572,848, this translates into an implied gross yield of approximately 2.93%. This calculation is derived from the formula: Gross Yield = (Annual Rental Income / Property Value) * 100.
In contrast, using the market rent figure of $1,425 per month for a two-bedroom unit, the annual rental income would be $17,100. The implied gross yield here is slightly higher at about 3.00%, based on the same median home value of $572,848.
The 23.3% renter density in Berryville suggests that while there is a significant portion of the population renting, it is still relatively low compared to urban areas. This indicates that landlords may face competition from homeownership opportunities, potentially affecting the demand for rental properties. However, the N/A-day DOM (Days on Market) implies either a very active real estate market where properties are quickly rented out, or a lack of comprehensive data to provide an accurate measure of how long rental units typically remain vacant before being leased.
Given these figures, the gross yield from market rents appears more favorable than the Section 8 FMR. However, the decision between accepting market rent or participating in the Section 8 program should also consider factors such as tenant stability, government subsidies, and the administrative overhead associated with the Section 8 program. The higher gross yield from market rents makes it a more attractive option for immediate financial returns, but the benefits of Section 8 tenancy might offset the lower yield for some landlords.
To conclude, for ZIP 22611, the gross yield from market rents stands at 3.00%, while the Section 8 FMR yields a gross return of 2.93%. These figures provide a baseline for investors to evaluate the potential profitability of rental investments in Berryville, Virginia, under different scenarios.
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.