Location: Madison County, VA | Metro: Madison 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 | $1,100 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,780 | $428,616 | 0.42% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 22738 presents a compelling scenario for both landlords and small-portfolio investors. With a median home value of $430,578, the area is positioned within a moderate price range that offers opportunities for both ownership and rental investments. The fact that the percentage of listings reduced is not available suggests a stable market where sellers are holding firm on their asking prices, indicating strong seller's market conditions.
The median days on market (DOM) being unavailable further supports the notion of a brisk sales environment, likely due to homes selling quickly. This rapid turnover signals that buyers are eager and willing to meet or exceed listing prices, thereby reinforcing the sellers' pricing power. Over the next 12-24 months, this trend implies that pricing power will remain with the sellers, allowing them to maintain or even slightly increase their asking prices without significant risk of homes remaining unsold for extended periods.
On the rental side, the Fair Market Rent (FMR) for ZIP code 22738 in fiscal year 2024 is set at $1290. While the comparison to the current market rent is not available, the FMR provides a benchmark for rental rates. For landlords, this suggests maintaining rents at or slightly above the FMR can be effective, given the strong demand implied by the home sales data.
For long-term investors considering appreciation, the setup in ZIP 22738 is promising. The combination of a moderate median home value and strong seller's market conditions indicates that property values are likely to appreciate gradually over time. This appreciation thesis is bolstered by the high demand for both homeownership and rentals, suggesting that the area is attractive to a wide range of potential residents.
Investors should also consider the broader economic context of the region, including job growth, population trends, and infrastructure developments, which can further influence property values and rental demand. However, based on the provided data, it is clear that ZIP 22738 offers a solid foundation for investment, with both home and rental markets showing signs of stability and gradual growth.
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.