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 | $1,060 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $367,325 | 0.4% | F |
| 3BR | $1,840 | $417,172 | 0.44% | F |
| 4BR | $2,460 | $471,329 | 0.52% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 22625, which encompasses Cross Junction, VA, in Frederick County, revolve around the Subsidized Area Fair Market Rent (SAFMR) and the local rental market conditions. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1810. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for a unit deemed suitable and reasonably priced.
In contrast, the local market rent for a similar two-bedroom unit, according to Census American Community Survey (ACS) data, averages $1951. This indicates that landlords in this area can expect a slight surplus over the SAFMR when renting to tenants with vouchers. However, it's crucial to understand that the total reimbursement from the voucher program includes not only the rent subsidy but also the tenant's contribution and any utility allowances.
Tenants with Section 8 vouchers are typically responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 for a tenant in this area, the tenant would contribute approximately $450 toward the monthly rent. Utility allowances are additional payments made directly to the landlord to cover the cost of utilities such as electricity, water, and gas. These allowances vary based on the number of bedrooms but generally range from $300 to $400 for a two-bedroom unit.
Therefore, the total reimbursement a landlord can expect from a voucher tenant for a two-bedroom apartment in ZIP 22625 would be the sum of the SAFMR ($1810), the tenant's portion ($450), and the utility allowance (let's use $350 as an estimate). This brings the total to $2610 per month. Given the local market rent of $1951, landlords would see a surplus of about $659 per month, assuming they charge the market rate and the tenant's income and family size remain consistent with these estimates.
This surplus provides a buffer for landlords, allowing them to cover maintenance costs, property management fees, and other expenses associated with owning rental properties. It also helps ensure that landlords are not financially disadvantaged by accepting Section 8 tenants, as they can still achieve a profit margin while providing affordable housing options.
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.