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 | $1,400 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $277,028 | 0.6% | F |
| 3BR | $2,070 | $388,214 | 0.53% | F |
| 4BR | $2,540 | $599,557 | 0.42% | F |
U.S. Census Bureau data (2024)
1690 FMR stands as the Fair Market Rent for ZIP 23069 (Hanover, VA) for fiscal year 2024, indicating the maximum rental assistance payment limit set by HUD. This figure is crucial for landlords and small-portfolio investors as it represents the benchmark for rental income under the Section 8 program. In comparison, the market rent of $1,328, derived from Census ACS data, reflects the actual average rent paid by tenants in the area. The difference between these two figures suggests a potential gap where landlords can leverage Section 8 to secure higher rents.
$416,078 marks the median home value in Hanover, VA, which is relatively stable and provides a good basis for property investment. Given the 9.4% share of renters in the area, the demand for rental properties is moderate but steady, making it a viable market for landlords who wish to diversify their portfolio. The median income of $83,453 indicates that while there is a segment of the population eligible for Section 8 assistance, there are also individuals capable of paying market rates, thus offering flexibility in rental strategies.
The absence of day DOM (Days on Market) and % price-cut share data suggests that the real estate market in Hanover, VA, is not experiencing high volatility or significant price adjustments, which is positive for long-term investment stability. Landlords should consider the FMR and market rent when setting their rental prices, ensuring they are competitive yet within the bounds of what is financially feasible for Section 8 participants.
In conclusion, the combination of a stable median home value, moderate renter share, and a higher FMR compared to market rent makes ZIP 23069 an attractive option for Section 8 participation. It allows landlords to potentially command higher rents than the local market average, while still serving a community in need. The verdict for Section 8 in Hanover, VA, is favorable for landlords seeking a balanced investment opportunity.
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.