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 | $1,280 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,000 | $324,951 | 0.62% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 23055, located in the Charlottesville, VA MSA, reveals several key points regarding the viability of investing in this area. The Fair Market Rent (FMR) as determined by HUD for FY 2024 is set at $1530 for this zip code. However, the market rent data for the area is currently unavailable, which makes direct comparisons challenging. Based on the available FMR, voucher tenants will cashflow at this rate, but the exact margin will depend on the actual market rents once they become available.
To provide context on the investment landscape, the median home value in ZIP 23055 is $343,234. Using this figure, we can derive a rent-to-price ratio that helps understand the relative attractiveness of renting versus buying. With an FMR of $1530, the annual rent would be approximately $18,360, leading to a rent-to-price ratio of about 5.35%. This suggests that rental properties are relatively affordable compared to home values, making it a favorable environment for investors seeking to capitalize on rental income.
The days on market (DOM) and the percentage of homes that experienced price cuts are also not available for this zip code. These metrics are crucial for understanding the health of the local real estate market and how quickly properties are moving. Without these figures, it's difficult to assess the precise dynamics of the rent-versus-buy market, but the current data points towards a stable rental market.
The strongest investor angle in ZIP 23055 is likely to be cashflow, given the established FMR and the relatively high median home value. Investors should focus on securing properties at or below the FMR to ensure positive cashflow, especially considering the potential for higher rents as the market adjusts. While appreciation and stability are also important factors, the immediate benefit of cashflow is most evident from the current data.
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.