Location: Orange County, 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 | $1,350 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $310,254 | 0.57% | F |
| 3BR | $2,190 | $415,591 | 0.53% | F |
| 4BR | $2,540 | $501,237 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 22923, encompassing Barboursville, VA, and part of the Orange County, VA metro area, presents a unique opportunity for investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for FY 2024 is $1,800 for this region. In comparison, the market rent as indicated by the Zillow Observed Rent Index (ZORI) stands at $2,899. This substantial gap between HUD's FMR and the actual market rent means that voucher tenants will only cash flow in premium units, where rents are closer to the FMR.
To further analyze the investment potential, consider the median home value in the area, which is $432,114. Using this figure, we can calculate the rent-to-price ratio. With a monthly rent of $1,800, the annual rent would be $21,600. Dividing the annual rent by the median home value gives us a rent-to-price ratio of approximately 0.05, or 5%. This ratio suggests that rental income alone may not cover all expenses for average-priced homes, making it essential for investors to focus on properties that offer higher cash flow potential or are priced below the median.
The dynamics between renting and buying in ZIP 22923 do not significantly impact the decision-making process due to the lack of available data on the median Days on Market (DOM) and the percentage of homes that have experienced price cuts. However, these metrics are crucial for understanding the broader real estate market health and can influence an investor's choice between cash flow and appreciation strategies.
The strongest angle for investors in this market is stability. Given the consistent demand for affordable housing and the presence of a reliable government-backed voucher system, investors can expect steady cash flows from premium units and long-term stability in property values, even if immediate cash flow from standard units is limited.
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.