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 | $1,510 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,940 | $350,595 | 0.55% | F |
| 3BR | $2,350 | $498,732 | 0.47% | F |
| 4BR | $2,900 | $692,073 | 0.42% | F |
| 5BR | $3,364 | $957,346 | 0.35% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 22932, located in Crozet, VA, reveals a significant gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Observed Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1970, while the ZORI stands at $2579. This results in a difference of $609, or approximately 25.4%, between what landlords can charge through Section 8 vouchers and the prevailing market rent.
In Crozet, where 18.8% of residents are renters and the median home value is $601,064, the disparity highlights the financial implications for landlords. With a median income of $115,545, the cost of housing voucher tenants below open-market rates can be substantial. Landlords must consider that accepting Section 8 vouchers means they will receive $1970 per month instead of the potential $2579 market rent, leading to a direct loss of revenue.
The gap underscores the importance of understanding the local rental market dynamics. While the FMR is designed to ensure affordable housing, it often falls short of covering the costs associated with maintaining properties at market standards. Landlords should weigh the benefits of steady, government-backed rental income against the lower rate compared to the open market.
In summary, the $609 shortfall represents a 25.4% reduction in potential monthly rent for landlords in Crozet, VA. This analysis is critical for small-portfolio investors considering Section 8 participation, as it directly impacts their overall yield and financial planning.
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.