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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $302,970 | 0.49% | F |
| 3BR | $1,840 | $442,805 | 0.42% | F |
| 4BR | $2,460 | $561,356 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 22637, which includes Gore, VA, in Frederick County, revolve around the SAFMR (Small Area Fair Market Rent) and local market rent figures. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1540. This figure is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
Contrastingly, the local market rent, as reported by the Census ACS, stands at $1,147 for a similar unit. This discrepancy highlights the premium that Section 8 vouchers offer to landlords within this ZIP code. The SAFMR is designed to cover a substantial portion of the rent, but it's crucial to understand how the total reimbursement is calculated.
A landlord should be aware that the voucher reimbursement isn't simply the SAFMR amount. Instead, it's a combination of the tenant's portion and the utility allowance. Typically, the tenant is responsible for paying 30% of their income towards rent. If we assume an average income for a Section 8 participant, this would mean the tenant might pay approximately $342, based on the SAFMR. However, the actual amount can vary depending on the individual tenant's income.
In addition to the tenant's contribution, there's also a utility allowance. For FY 2024, this allowance is usually around $200-$300 per month, depending on the number of bedrooms and local energy costs. Therefore, the total reimbursement a landlord receives is the sum of the tenant's portion and the utility allowance, capped at the SAFMR of $1540.
To illustrate, if the tenant's portion is $342 and the utility allowance is $250, the landlord would receive $592 from the tenant and the housing authority, respectively, totaling $1540. This ensures that landlords are compensated at the SAFMR level, even if the tenant's income is lower than the market average.
Given the local market rent of $1,147, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 22637 would be a surplus of $393. This means that landlords participating in the Section 8 program for this ZIP code can expect to receive more than the local market rent, providing a financial cushion above what they might earn from non-voucher tenants.
Landlords should also factor in potential administrative overheads and the need for maintaining properties up to program standards, which can influence the overall profitability. Nonetheless, the economic dynamics favor participation in Section 8 for units priced around the local market rent, offering a guaranteed income above the prevailing rates.
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.