Location: Madison County, VA | Metro: Madison County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 22722 reveals several critical points that potential Section 8 landlords must consider before entering this market. Tenant turnover poses a significant challenge, as the Fair Market Rent (FMR) for FY 2024 is set at $1090, which may not align with the local market rent. This discrepancy can lead to higher turnover rates, as tenants might seek more affordable housing options or move if they find better deals elsewhere.
Vacancy exposure is another concern, especially considering the typical home value in the area stands at $386,492, while the median income is $205,250. These figures suggest that residents may struggle to afford housing costs, increasing the likelihood of vacancies. The average days on market (DOM) is not available, but it is crucial for landlords to understand this metric to gauge how quickly properties might become vacant and how long it takes to refill them.
Deferred maintenance is also a risk factor. Given the median income level, some homeowners might delay necessary repairs and maintenance due to financial constraints. For landlords, this translates into potential higher upfront and ongoing costs to ensure properties meet the required standards for Section 8 tenancy.
However, the 0.0% renter share statistic indicates that there is a high concentration of owner-occupied homes in ZIP 22722. Typically, areas with a high percentage of renters see increased demand for housing vouchers. While the renter share is exceptionally low here, it does not necessarily mean that voucher demand will be low, as the presence of Section 8 properties can attract voucher holders seeking affordable housing.
In summary, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance are substantial for ZIP 22722. Despite these challenges, the potential for voucher demand remains an unknown variable that could mitigate some of these risks. Therefore, the overall risk for a first-time Section 8 landlord in this ZIP code is moderate.
Data Sources: FMR data from HUD (2027). 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.