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 | $1,280 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $274,718 | 0.6% | D |
| 3BR | $2,000 | $336,275 | 0.59% | F |
| 4BR | $2,460 | $359,477 | 0.68% | D |
U.S. Census Bureau data (2024)
The investment risk assessment for Section 8 properties in ZIP code 22949, Lovingston, VA, reveals several potential issues. First, tenant turnover could be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1270 for fiscal year 2024. This could lead to difficulties in attracting tenants willing to pay the FMR rate, which might not align with the local market conditions. Second, there's a significant exposure to vacancies, as the average Days on Market (DOM) for properties in this area is not available, suggesting a lack of recent sales data which could indicate a slow-moving market. Third, the typical home value in the area stands at $314,405, while the median household income is $52,679. This income level may not support the cost of maintaining properties at their typical values, leading to potential deferred maintenance issues that can negatively impact property value and tenant satisfaction.
Despite these risks, the high renter share of 27.9% in Lovingston points towards a robust demand for rental housing, including Section 8 vouchers. A higher concentration of renters typically translates into a greater likelihood of finding tenants who need and qualify for subsidized housing. This demand can help mitigate some of the risks associated with vacancy rates and tenant turnover, as it suggests a steady pool of potential residents who are interested in renting properties.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.