Location: Harrisonburg, VA | Metro: Harrisonburg, VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 22831 reveals two distinct rental income scenarios based on the Fair Market Rent (FMR) and market rent figures. For the annualized 2BR FMR at $1050, the implied gross yield can be calculated by multiplying this figure by 12 months, resulting in an annual rental income of $12,600. Given the median home value of $263,024 in the area, the gross yield is approximately 4.8%, calculated as $12,600 divided by $263,024.
In contrast, the market rent figure is currently unavailable, which makes it challenging to provide a precise comparison. However, it is important to consider that the actual market rent could vary significantly from the FMR, potentially offering a higher or lower gross yield. The absence of market rent data means that investors must rely on local market knowledge or recent comparable sales to estimate a more accurate gross yield.
The 12.9% renter density suggests that while there is a notable portion of renters in the area, it is not overwhelmingly high. This implies that competition for tenants, including those participating in the Section 8 program, could be moderate. Additionally, the lack of data on days on market (DOM) indicates that the turnover rate for rentals might be stable, but without specific figures, it's difficult to quantify.
Given the data available, the FMR-based gross yield of 4.8% offers a concrete starting point for investment analysis. However, for a more realistic assessment, investors should seek out current market rent data for similar properties. The FMR serves as a baseline, but actual yields could differ based on the property's condition, location, and demand. In areas with a significant number of Section 8 participants, landlords often find that the renter density and program participation can stabilize cash flow, making properties with this type of tenant mix attractive despite potentially lower gross yields compared to market rents.
To summarize, while the FMR provides a clear 4.8% gross yield, the true potential of an investment in ZIP 22831 depends on the market rent, which is currently unknown. Investors should proceed with caution and gather additional local market data to refine their analysis.
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.