Location: Middlesex County, VA | Metro: King and Queen County, 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 | $1,270 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $241,888 | 0.62% | D |
| 3BR | $1,910 | $331,124 | 0.58% | F |
| 4BR | $2,360 | $450,006 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 23149 (Saluda, VA) might raise several objections regarding the feasibility of investing in the area. Let's address these concerns using the available data.
Objection 1: Will FMR $1200 (zip FY 2024) cover the mortgage on a $327,126 home?
The Fair Market Rent (FMR) for ZIP 23149 in fiscal year 2024 is set at $1200. This amount needs to be evaluated against the mortgage costs for a home priced at $327,126. Based on current interest rates and typical loan terms, a monthly mortgage payment could range widely. However, it's important to note that the FMR is intended to reflect the market conditions and may not necessarily cover all expenses associated with owning a property. Additional sources of income or a lower mortgage rate might be necessary to ensure financial stability.
Objection 2: Is there enough renter demand at 25.1%?
Rental demand in ZIP 23149 is relatively low, with only 25.1% of households being renters. This percentage suggests that the majority of residents own their homes. While this might initially seem concerning, it's crucial to consider the broader context. The total number of rental units available in the area is limited, which can create a competitive market for the few rental properties. Additionally, the rental demand can vary based on seasonal factors or economic changes, so a more detailed analysis of the local economy and housing trends would be beneficial.
Objection 3: Will vouchers keep pace with $1,096 market rents?
The market rents for 3+ bedroom apartments in ZIP 23149 typically start at $1,000 per month. Given the FMR of $1200, it appears that vouchers could potentially cover a significant portion of the rent. However, whether they will keep pace with increasing market rents depends on the rate at which the FMR adjusts to inflation and other economic factors. As of now, the FMR does exceed the average market rent, providing some assurance that vouchers will remain a viable option for tenants.
Investing in ZIP 23149 requires careful consideration of the local housing market dynamics. While the FMR provides a benchmark for rental pricing, it may not fully cover mortgage payments without additional income streams. The relatively low rental demand indicates a niche market, but the limited supply of rental units could still present opportunities. Lastly, the current FMR exceeds the average market rent, suggesting that vouchers can help maintain a stable tenant base. However, future adjustments in both FMR and market rents need to be monitored closely.
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.