Location: Caroline County, VA | Metro: Richmond, VA HUD Metro FMR Area
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 | $1,360 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $270,454 | 0.55% | F |
| 3BR | $1,930 | $419,225 | 0.46% | F |
| 4BR | $2,350 | $620,379 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,540 for ZIP 23047 (Doswell, VA) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $437,640. To evaluate this, consider that the average monthly mortgage payment for a home at this price point, assuming a 30-year fixed rate mortgage at an interest rate of around 4%, would be approximately $2,000. Thus, relying solely on FMR would not be sufficient to cover the mortgage without additional income sources such as a co-signer or rental income from other properties.
The investor may also express doubt over the adequacy of renter demand in Doswell, given the 15.5% share of renters in the area. This percentage indicates that while a significant portion of the population does rent, it is lower than some other areas, suggesting a potentially smaller pool of tenants. However, this concern can be mitigated by understanding that the median household income in Doswell is relatively high, which means that even a smaller percentage of renters could still represent a strong demand for quality housing. Additionally, the proximity to larger metropolitan areas can attract renters seeking affordable options outside urban centers.
A final objection could be whether Housing Choice Vouchers will keep up with the market rents of $1,192. The voucher amount in Doswell, VA, is set at the FMR level of $1,540, which exceeds the current market rent. This suggests that voucher holders should have sufficient funds to cover the typical rental costs in the area. However, it's important to note that voucher usage is subject to availability and administrative processes, which can sometimes delay or limit access to housing. Furthermore, the actual number of voucher holders in the area and their willingness to use them in Doswell specifically would require further investigation.
In summary, while the FMR of $1,540 alone won't cover the mortgage on a home valued at $437,640, the combination of higher median incomes and the potential for attracting renters from nearby metropolitan areas provides a reasonable outlook for rental demand. Regarding vouchers, they do exceed the current market rent, but their impact depends on the local availability and administrative efficiency.
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.