Location: Shenandoah County, 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 | $1,120 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $368,567 | 0.39% | F |
| 3BR | $1,810 | $446,644 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 22654, located in Star Tannery, Virginia, presents an interesting landscape for both renters and landlords. The median household income in this area stands at $74,721, which is a solid figure indicating a relatively comfortable financial situation for residents. However, the market rate for rent in the area is listed as N/A, suggesting incomplete data on the actual rental costs.
To provide context, the Fair Market Rent (FMR) as determined by HUD for ZIP 22654 for fiscal year 2024 is set at $1440. This means that a household receiving a housing voucher would be able to pay up to this amount towards rent. Given the median income, a household should theoretically be capable of paying more than the FMR, assuming they allocate a reasonable portion of their income to housing expenses.
With only 5.2% of the population being renters and a total population of 1,040, the rental market in Star Tannery is quite limited. This small percentage of renters indicates a competitive environment for landlords, as there are fewer potential tenants to attract. The affordability gap, represented by the difference between the median income and the FMR, suggests that while some households might have the capacity to pay higher rents, others might rely heavily on voucher programs to find suitable housing.
For landlords considering their strategy, it's crucial to understand the dynamics of this niche market. While cash-paying tenants may offer the potential for higher rents, the limited number of renters means competition will be fierce. On the other hand, accepting vouchers ensures a steady stream of tenants who are financially supported by the government to meet their rent obligations. Vouchers also guarantee that the rent is paid promptly and in full, reducing the risk of non-payment.
The takeaway for landlords is clear: diversifying their tenant mix to include both voucher recipients and cash-paying tenants can help stabilize income and manage risks effectively. By strategically offering a mix of properties that cater to both groups, landlords can leverage the strengths of each type of tenant to ensure long-term success in the local rental market.
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.