Location: Page County, VA | Metro: Harrisonburg, VA MSA
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 | $960 |
| 1 Bedroom | $1,040 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $247,622 | 0.48% | F |
| 3BR | $1,630 | $295,017 | 0.55% | F |
| 4BR | $1,920 | $312,334 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,180 for ZIP code 22849 in Shenandoah, VA, will sufficiently cover the mortgage on a home priced at $277,658. To address this, consider that the median monthly mortgage payment for a typical 30-year fixed-rate mortgage at today's average interest rate would be approximately $1,150. This calculation assumes a down payment of 20% and an interest rate of around 6%. While the FMR is slightly above the estimated mortgage payment, it's crucial to factor in additional costs such as property taxes, insurance, and maintenance. These can add another $300-$400 per month, making it challenging to break even.
The second objection concerns the level of renter demand, which stands at 23.5%. This percentage indicates that less than a quarter of households are renters, suggesting a relatively low rental market penetration. However, the demand for rentals is steady, and the vacancy rate in the area is below the national average, indicating a healthy market. Additionally, the local economy supports a mix of industries including healthcare, education, and manufacturing, providing job stability and a consistent tenant pool.
The final concern revolves around whether Section 8 vouchers will keep up with the current market rents of $1,033. The FMR set by HUD is indeed higher at $1,180, but it's important to note that voucher holders often face challenges in finding units that accept their vouchers and fall within the allowable rent range. Landlords in Shenandoah should expect some negotiation when setting rent prices for voucher recipients, as the actual amount paid can vary based on the individual tenant's income and the landlord's willingness to accept the voucher.
In summary, while the FMR covers the mortgage, the total cost of ownership must be considered. The rental demand, though not high, is stable. And while the FMR exceeds current market rents, landlords should be prepared for some flexibility in accepting voucher amounts.
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.