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 | $1,300 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $286,177 | 0.58% | F |
| 3BR | $2,050 | $412,114 | 0.5% | F |
| 4BR | $2,480 | $550,865 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 22974, located in Troy, Virginia, reveals a unique balance between yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone.
On the yield axis, the potential rental income is relatively strong. The Fair Market Rent (FMR) for 2024 is set at $1,620, which is significantly higher than the current market rent of $1,093. This suggests an opportunity for landlords to increase their rental income if they can position their properties competitively. However, the median home value of $446,018 indicates a higher initial investment compared to the average market.
Regarding stability, the indicators are mixed. The percentage of renters in the area is low at 9.9%, which might imply less demand for rental properties. Additionally, the median household income is $112,344, suggesting that residents have the financial capability to purchase homes rather than rent them. The lack of data on days on market (DOM) makes it difficult to assess the speed at which rental properties turn over, but the low percentage of renters points towards a potentially unstable rental market.
Given these factors, ZIP 22974 leans more towards a steady-cashflow zone. While the rental yield is promising due to the disparity between FMR and market rent, the low percentage of renters and high median household income indicate a stable environment where long-term investments are more likely to succeed. Landlords and small-portfolio investors should focus on providing quality, well-priced rentals to capitalize on the yield while mitigating risks associated with low renter demand.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.