Location: Madison County, VA | Metro: Madison County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 22723 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1020 for fiscal year 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental market conditions unique to 22723.
Local market rents are currently unavailable, but we can still analyze the situation based on the SAFMR. A landlord participating in the Section 8 program will receive a payment from the housing authority that covers most of the rent, with the tenant responsible for paying a portion themselves. The tenant's contribution is typically 30% of their adjusted income, which can vary widely depending on the individual's financial status.
To illustrate, let’s assume a tenant has an adjusted income of $1500 per month. Their required contribution would be 30%, or $450. The housing authority would then pay the remaining amount up to the SAFMR of $1020. In this case, the landlord would receive $570 from the housing authority, making the total reimbursement $1020.
In addition to the base rent, there are utility allowances. These allowances are meant to cover the cost of utilities and are separate from the rent reimbursement. For a two-bedroom apartment, the utility allowance is usually around $300, though it can vary. This means the landlord might receive an additional $300 to help offset utility costs, bringing the total monthly reimbursement closer to $1320 if the utility allowance is fully utilized.
However, the utility allowance does not increase the overall SAFMR; it remains at $1020. If the local market rent is higher than the SAFMR, landlords may face a reimbursement gap. Conversely, if the market rent is lower, they could see a surplus. Given the SAFMR of $1020, landlords should expect a reimbursement gap unless they can find tenants willing to contribute more towards rent, which would be unusual given the program's structure.
The typical reimbursement gap for a two-bedroom apartment in ZIP 22723 is therefore the difference between the market rent and the SAFMR of $1020. Since the local market rent data is not available, landlords must compare this rate with the actual rents they charge to determine if participating in Section 8 will be financially viable for them.
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.