Location: Madison County, VA | Metro: Culpeper County, VA HUD Metro FMR Area
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 | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,810 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,810 | $450,540 | 0.4% | F |
| 4BR | $1,950 | $588,647 | 0.33% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 22735 reveals that the HUD Fair Market Rent (FMR) of $1220 for the fiscal year 2024 is the key benchmark for rental income. However, the current market rent is listed as N/A, indicating a lack of recent data. This absence makes it challenging to directly compare the HUD FMR to prevailing market rates. Despite this, based on the HUD FMR alone, landlords can expect their properties to cashflow when occupied by voucher tenants, assuming the market rent does not significantly exceed the FMR.
To derive a rent-to-price ratio, we use the median home value of $457,561. This suggests that the rental income of $1220 represents approximately 0.3% of the median home value, which is a useful metric for understanding the potential returns on investment. The exact ratio would be more meaningful if compared against a more accurate market rent figure, but given the available data, it provides insight into the relative cost of renting versus buying in this area.
The days on market (DOM) and the percentage of homes that have experienced price cuts are also listed as N/A. These figures are crucial for understanding the local housing market's dynamics, particularly how quickly homes sell and whether sellers are adjusting their prices due to market conditions. Without these details, it's difficult to assess the broader impact on rent-versus-buy decisions, though the lack of recent sales data could indicate a stable market with little fluctuation.
In conclusion, the strongest angle for Section 8 investors in ZIP code 22735 is likely cashflow. With the HUD FMR set at $1220, landlords can secure steady income from voucher tenants, even without precise market rent data. This predictability offers a reliable source of revenue, making it an attractive option for those prioritizing consistent cashflow over speculative gains in appreciation or stability.
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.