Location: Louisa 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 | $1,410 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,800 | $449,061 | 0.4% | F |
| 3BR | $2,200 | $581,856 | 0.38% | F |
| 4BR | $2,700 | $965,725 | 0.28% | F |
| 5BR | $3,132 | $1,316,746 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 22947, Keswick, VA, provides valuable insights into potential investment returns. To start, the Fair Market Rent (FMR) for a two-bedroom apartment in Keswick, VA for fiscal year 2024 is set at $1490 annually. When compared to the median home value of $818,858, this translates to an implied gross yield of approximately 1.82%. This calculation is derived by taking the annual FMR ($1490 * 12 months) and dividing it by the median home value.
On the other hand, using the market rent figure of $1,399 per month as reported by the Census Bureau's American Community Survey (ACS), the implied gross yield drops to about 1.69%. The difference between these two yields is significant, especially when considering the overall economic landscape and rental market dynamics of Keswick, VA.
A key factor in determining which scenario is more realistic involves looking at the local renter density and days on market (DOM) trends. With a renter density of 15.2%, it's evident that the majority of homes in Keswick, VA are owner-occupied, indicating a potentially less active rental market. However, the N/A-day DOM suggests that there might be insufficient data on how quickly rental properties are being leased, which could imply either a stable market or a lack of recent activity.
Given the higher implied gross yield from the FMR scenario, it appears more favorable at first glance. However, the FMR is a government-set benchmark that often does not reflect the actual market conditions. Therefore, the market rent scenario, with its slightly lower gross yield, is likely a more accurate representation of what investors can expect in terms of rental income.
In conclusion, while the Section 8 program offers a gross yield of 1.82% based on the FMR, the actual market conditions suggest a more realistic gross yield of 1.69%. Investors should consider these figures alongside the local economic factors and their own financial models to determine the viability of Section 8 investments in Keswick, VA.
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.