Location: Shenandoah County, VA | Metro: Shenandoah County, VA
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 | $950 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $337,717 | 0.35% | F |
| 3BR | $1,500 | $428,933 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 22652, located in Shenandoah County, Virginia, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this classification lies in the significant spread between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR for the Shenandoah County metro area is set at $1,120. However, the average market rent in ZIP 22652 is only $972, indicating a strong potential for positive cash flow when properties are rented under Section 8 contracts.
To further solidify this point, consider the median home value in the area, which stands at $412,555. This high median home value suggests that property taxes and mortgage payments might be relatively higher compared to lower-cost areas. Nonetheless, the disparity between the FMR and the market rent ensures that landlords can cover these expenses while still maintaining a steady, reliable cash flow.
While appreciation plays and diversifiers have their merits, ZIP 22652 does not offer compelling evidence for those strategies. The price-cut share and days on market (DOM) figures are not available, suggesting a stable market without significant fluctuations that would drive rapid price appreciation. Similarly, although the renter share is 24.0% and the median income is $81,722, these factors alone do not make the area a standout choice for diversification. Instead, the focus should be on leveraging the strong cash flow potential that the ZIP code offers.
In conclusion, ZIP 22652 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable spread between the FMR and market rents, ensuring steady income that can support higher costs associated with owning property in the area.
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.