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 | $1,390 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,180 | $621,625 | 0.35% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 22940 is set to remain stable over the next 12-24 months, with the median home value currently at $629,325. This figure suggests that homeowners have a significant equity stake in their properties, which can translate into strong pricing power should the market demand increase. The fact that the percentage of listings reduced is not available indicates a potentially balanced market where neither buyers nor sellers hold an overwhelming advantage. However, without the median days on market (DOM) data, it's challenging to assess how quickly homes are selling and whether there is a trend towards faster or slower sales.
On the rental side, the Fair Market Rent (FMR) for ZIP 22940 is listed at $1860 for fiscal year 2024, providing insight into the affordability and demand for rental properties in the area. If the FMR is significantly higher than the current market rent, it signals potential upward pressure on rents, driven by the cost of living and the affordability of housing. Conversely, if the FMR is lower, it could indicate a market where rental prices are already high relative to income levels, potentially leading to a slowdown in rental price growth.
For long-term investors considering holding onto properties in ZIP 22940, the appreciation thesis depends largely on broader economic factors such as job growth, population changes, and interest rates. Given the median home value and assuming the FMR accurately reflects market conditions, there is a realistic scenario where property values could appreciate in line with inflationary pressures and demand for both owner-occupied and rental units. However, the absence of specific historical appreciation rates makes it difficult to quantify the expected rate of growth.
The stability in median home values and the potential for rental income to grow in line with the FMR suggest that ZIP 22940 offers a solid investment opportunity for those looking to capitalize on steady growth rather than rapid appreciation. Landlords and small-portfolio investors should focus on maintaining properties to ensure they meet the standards implied by the FMR, thereby securing a consistent tenant base and rental income stream.
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.