Location: Staunton-Stuarts Draft, 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 |
|---|---|---|---|---|
| 1BR | $1,450 | $170,443 | 0.85% | C |
| 2BR | $1,650 | $291,842 | 0.57% | F |
| 3BR | $2,000 | $462,660 | 0.43% | F |
| 4BR | $2,460 | $629,587 | 0.39% | F |
| 5BR | $2,854 | $823,204 | 0.35% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 22967 (Roseland, VA) for Section 8 properties involves three key questions based on the provided data.
1) Does the Fair Market Rent (FMR) of $1270 cover the debt service on a property valued at $416,615?
If the answer is yes, proceed to the next question. To determine this, calculate the monthly mortgage payment for a $416,615 property. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly principal and interest would be approximately $2,170. The FMR of $1270 does not cover this amount, so the answer to this question is no. This means that the FMR alone would not be sufficient to clear the debt service on such a property. However, if the landlord can secure additional income sources or if the property has lower-than-average financing costs, they might still consider investing despite this initial hurdle.
2) Is the market rent of $935 above, at, or below the FMR?
The market rent of $935 is below the FMR of $1270. This indicates that landlords could potentially receive higher rents from Section 8 tenants compared to market-rate tenants, which could help offset the initial lack of coverage from the FMR.
3) Are 19.0% of the residents renters, and is the number of days on the market (DOM) sufficient to ensure demand?
Renters make up 19.0% of the population in ZIP 22967. Unfortunately, the data provided does not include the number of days on the market (DOM), making it impossible to fully assess the rental demand. However, the percentage of renters suggests there is some level of demand for rental housing in the area. Without the DOM figure, it's difficult to provide a definitive answer on whether this demand is strong enough to support Section 8 investments.
Decision Tree Summary:
In conclusion, the data suggests that while there is potential for slightly higher rents from Section 8 tenants compared to market rates, the FMR does not sufficiently cover the debt service on a $416,615 property. Additionally, the rental demand appears modest at 19.0%, but without knowing the DOM, it's challenging to make a final determination. Landlords should conduct thorough due diligence, including assessing local rental vacancy rates and trends, before deciding to invest in ZIP 22967 for Section 8 properties.
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.