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 | $1,420 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,820 | $305,689 | 0.6% | F |
| 3BR | $2,220 | $350,939 | 0.63% | D |
| 4BR | $2,720 | $447,917 | 0.61% | D |
| 5BR | $3,155 | $562,204 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 22963, which encompasses Palmyra, VA, reveals that the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1850. This figure aligns exactly with the market rent as indicated by the Zillow Rent Index (ZORI), also at $1850. The absence of a gap between these two figures means that landlords who accept housing vouchers can expect to receive rental income that matches the local market rates.
In Palmyra, VA, where only 6.2% of residents are renters, the median home value stands at $376,717, and the median income is $104,259. These conditions suggest that the area has a predominantly owner-occupied housing stock, with a relatively high median income level that supports market rents at or above the FMR.
When the FMR equals the market rent, as it does here, accepting Section 8 tenants becomes a strategic choice for yield enhancement. Landlords can leverage the stability and reliability of government-backed payments without sacrificing rental income levels. This scenario minimizes the risk of renting below market rates, ensuring a consistent cash flow that aligns with the local economic realities.
However, should the FMR fall below the market rent, landlords would face the challenge of subsidizing the difference between the voucher amount and the actual market value of their properties. In such cases, the cost of housing voucher tenants below open-market rates could be substantial, potentially reducing profit margins or requiring landlords to seek alternative revenue streams to offset the shortfall.
In conclusion, for Palmyra, VA, the alignment of FMR and market rent makes the acceptance of Section 8 tenants a viable option for maximizing yields while serving a portion of the community that relies on federal assistance for housing. Landlords should consider the long-term benefits of steady rental income alongside the unique challenges and requirements of participating in the Section 8 program.
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.