Section 8 Fair Market Rent (FMR) for ZIP 22903 - 2027

Investment Score for ZIP 22903

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,330
1 Bedroom	$1,500
2 Bedrooms	$1,710
3 Bedrooms	$2,070
4 Bedrooms	$2,550
5 Bedrooms	$2,958
6 Bedrooms	$3,313
7 Bedrooms	$3,578
8 Bedrooms	$3,757

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,500	$279,080	0.54%	F
2BR	$1,710	$347,002	0.49%	F
3BR	$2,070	$485,949	0.43%	F
4BR	$2,550	$777,171	0.33%	F
5BR	$2,958	$1,203,339	0.25%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 22903 (Charlottesville, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 22903 is set by HUD for the year 2026. The FMRs for different unit sizes are as follows: - 0BR: $1470 - 1BR: $1660 - 2BR: $1890 (32.7% of median income) - 3BR: $2300 - 4BR: $2830 However, the actual rental market in Charlottesville is significantly higher than these FMRs. For instance, Zillow reports that the median price for a 2BR home is $344,571. This high median price translates into rental costs that are much higher than the FMRs. The price-to-FMR ratio for a 2BR unit is 15.2x, indicating that the actual rent could be around $28,735 per year, or approximately $2,394 per month. This means that the actual rent for a 2BR unit is nearly 1.3 times the FMR. Given these figures, Section 8 voucher holders face significant constraints in finding affordable housing. The FMRs do not reflect the true cost of renting in this area, which can make it challenging for voucher recipients to secure suitable accommodation. Landlords may be hesitant to accept vouchers due to the discrepancy between the FMR and the actual market rent, leading to a potential shortage of available units for voucher holders. #### Affordability & Renter Profile ZIP code 22903 has a population of 40,372, with 57.8% of residents being renters. This high percentage suggests a robust rental market. The occupancy rate stands at 91.4%, indicating that the market is relatively tight, with few vacant units available. The median household income in the area is $69,340, and the FMR for a 2BR unit represents 32.7% of this median income. This implies that a substantial portion of the population would struggle to afford market-rate rentals without financial assistance. Given the high renter percentage and the tight occupancy rate, the rental market is likely to remain competitive. The median income is relatively low compared to the high median home value, making it difficult for many residents to purchase homes. Therefore, the rental market is crucial for maintaining housing stability in the area. #### Investor Angle From an investor perspective, the ZIP code 22903 presents both opportunities and challenges. The FMRs set by HUD are significantly lower than the actual market rents, which can impact cash flow positively if landlords are willing to accept Section 8 vouchers. However, the high price-to-FMR ratio suggests that the actual rent could be substantially higher than the FMR, potentially limiting the number of voucher holders who can afford to live there. To determine the investment grade, we need to consider the following factors: - The high demand for rental properties, indicated by the high renter percentage and tight occupancy rate. - The potential for higher rental income, given the disparity between FMR and actual market rates. - The risk associated with accepting Section 8 vouchers, including the possibility of lower rent payments and stricter regulations. Given the high demand and potential for higher rental income, investing in this ZIP code could be profitable. However, the decision to accept Section 8 vouchers should be carefully weighed against the risks involved. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might find it more practical to focus on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1470 and $1660 respectively, which are closer to the actual market rents. This could help in securing more tenants and ensuring better cash flow. 2. **Consider Mixed-Income Developments**: To balance the needs of voucher holders and market-rate renters, mixed-income developments could be a viable strategy. By offering a mix of units at different price points, investors can cater to a broader range of tenants while still benefiting from higher market rents. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of vouchers and the preferences of voucher holders. This can help investors tailor their offerings to meet the needs of both voucher holders and other renters, thereby maximizing occupancy and profitability. #### Bottom Line For Section 8-focused investors, the recommendation is to **Hold**. While the high price-to-FMR ratio poses challenges, the strong rental demand and high occupancy rate suggest that the market remains attractive. Investors should consider focusing on smaller units and engaging in mixed-income developments to ensure a steady stream of tenants and maintain positive cash flow. However, they must also be prepared to navigate the complexities of working with Section 8 vouchers and local housing authorities.

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.