Location: Charlottesville, VA | Metro: Charlottesville, 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 | $1,440 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $273,032 | 0.6% | F |
| 2BR | $1,850 | $397,696 | 0.47% | F |
| 3BR | $2,250 | $480,621 | 0.47% | F |
| 4BR | $2,770 | $589,121 | 0.47% | F |
| 5BR | $3,213 | $799,748 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 22902, which encompasses Charlottesville, VA, and parts of Albemarle County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1800 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique housing cost dynamics within it.
To understand the financial implications for landlords, consider the structure of a Section 8 voucher. The total rent for a two-bedroom unit in ZIP 22902 is capped at $1800 per month under the Section 8 program. However, the local market rent, as measured by ZORI (Zillow Observed Rent Index), is higher at $2,051. This discrepancy means landlords must decide whether to accept the lower guaranteed payment from the government or seek tenants who can pay the higher market rate.
A voucher holder is typically required to contribute 30% of their adjusted income towards rent. For example, if the tenant's adjusted income is $1,200 per month, they would owe $360 toward the rent. The remaining amount is covered by the Section 8 program, up to the SAFMR limit. If utilities are included in the rent, an additional allowance is provided to cover these costs, but this allowance does not increase the overall reimbursement beyond the SAFMR cap.
Let’s break down the reimbursement for a landlord accepting a Section 8 tenant in ZIP 22902. Assuming the tenant contributes 30% of their income, and the utility allowance is $150, the total reimbursement from the government would be calculated as follows:
In this scenario, the government would reimburse the landlord $1800 - $360 - $150 = $1290. Therefore, the landlord receives a total of $1290 from the government plus $360 from the tenant, totaling $1650. Given the local market rent of $2,051, the landlord would face a shortfall of $401 per month.
This analysis reveals a consistent trend where landlords in ZIP 22902 receive less than the market rate when participating in the Section 8 program. The typical reimbursement gap for a two-bedroom unit is $401, based on the SAFMR of $1800 and the local market rent of $2,051. Landlords should carefully weigh this gap against the stability of guaranteed payments and the potential for reduced vacancy rates when deciding whether to participate in the Section 8 program.
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.