Location: Orange County, VA | Metro: Madison County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 22972 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1040 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
To understand what a voucher pays, it's important to break down the components. The voucher payment is structured around covering the majority of the rent, but the tenant is responsible for contributing a portion themselves. Typically, the tenant must pay 30% of their adjusted income toward rent. If we assume an average adjusted income for a tenant in this area, they might contribute around $312 per month, which is 30% of the SAFMR. This leaves the voucher program to cover the remaining 70%, or approximately $728 per month.
In addition to the base rent, the voucher also includes utility allowances. These allowances vary but generally provide extra funds to help cover electricity, water, and gas expenses. For a two-bedroom unit, the utility allowance might add another $100-$150 to the monthly reimbursement, bringing the total voucher reimbursement to roughly $828-$878 per month.
Given that the local market rent data is currently unavailable, it's crucial to note that the SAFMR of $1040 represents the maximum amount the government will reimburse for a two-bedroom apartment in ZIP 22972. If the actual market rent is higher, landlords will face a reimbursement gap. Conversely, if the market rent is lower, landlords may see a surplus.
To calculate the reimbursement gap or surplus, subtract the total voucher reimbursement ($828-$878) from the actual market rent. For instance, if the market rent for a two-bedroom apartment is $1200, the reimbursement gap would be $322-$372 per month. On the other hand, if the market rent is $800, landlords would receive a surplus of $28-$78 per month.
Landlords should keep these figures in mind when deciding whether to participate in the Section 8 program. The key is understanding the SAFMR applies specifically to this ZIP code, ensuring that the reimbursement rates are reflective of the local rental market conditions.
In summary, landlords in ZIP 22972 can expect a reimbursement range of $828-$878 per month for a two-bedroom apartment under the Section 8 program, depending on the utility allowance. This figure should be compared against the actual market rent to determine the financial impact of accepting a Section 8 tenant.
Data Sources: FMR data from HUD (2027). 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.