Location: Rappahannock County, VA | Metro: Rappahannock 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 | $1,360 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $565,130 | 0.28% | F |
| 3BR | $1,860 | $665,332 | 0.28% | F |
| 4BR | $2,340 | $988,823 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 22747 in Washington, VA, reveals a significant disparity between government-subsidized rental income and market rents, impacting potential investment returns.
The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2024 is set at $990 per month. When annualized, this translates to an annual rental income of $11,880. Given the median home value in the area stands at $662,936, the implied gross yield for a property receiving Section 8 payments would be approximately 1.8%. This calculation is derived by dividing the annual rental income by the median home value: $11,880 / $662,936 = 0.018 or 1.8%.
In contrast, the lack of available market rent data for the area makes it challenging to provide a precise gross yield for non-Section 8 properties. However, it's important to note that the actual market rents could significantly exceed the FMR, potentially leading to higher gross yields for landlords not participating in the Section 8 program.
Considering the 32.6% renter density in the area, it's evident that there is a substantial demand for rental housing. However, the absence of data regarding the Days on Market (DOM) for rental listings in ZIP 22747 suggests that either the market is relatively stable, or there might be a scarcity of recent transactions to analyze. This stability implies that landlords who can secure tenants through market rents rather than relying solely on Section 8 subsidies may achieve better returns.
The gross yield comparison is stark: a property receiving Section 8 payments would have a gross yield of around 1.8%, whereas the potential for higher market rents indicates a more lucrative investment scenario. For small-portfolio investors and landlords, understanding these dynamics is crucial for making informed decisions about whether to participate in the Section 8 program or seek higher returns through market-based rentals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.