Location: Staunton-Stuarts Draft, VA | Metro: Staunton-Stuarts Draft, 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 | $1,060 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $227,815 | 0.54% | F |
| 3BR | $1,660 | $323,293 | 0.51% | F |
| 4BR | $1,830 | $418,112 | 0.44% | F |
| 5BR | $2,123 | $581,354 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 24401, Staunton, VA, might raise several valid concerns regarding the feasibility of investing in the area. Here are some key questions addressed with the available data.
Will the Fair Market Rent (FMR) of $1150 for ZIP 24401 in fiscal year 2024 cover the mortgage on a $308,856 home?
The FMR set by HUD is an important benchmark but does not guarantee that it will cover the mortgage costs on a property valued at $308,856. To accurately assess whether the FMR can cover the mortgage, one needs to consider the interest rate, loan terms, and down payment percentage. However, based solely on the FMR, it's unlikely to cover the mortgage on a home of that value without additional income sources or significant equity.
Is there enough renter demand at 34.7%?
The 34.7% rental rate in ZIP 24401 suggests a moderate level of demand for rental properties. While this percentage indicates that a sizeable portion of the housing stock is rented, it also implies that a majority of residents own their homes. This mix can be advantageous for landlords as it ensures a steady pool of potential tenants who prefer renting over homeownership. However, the data alone does not provide insights into the competition among rental properties or the vacancy rates, which are critical factors for assessing demand.
Will vouchers keep pace with $1,499 market rents?
The Housing Choice Voucher program, commonly known as Section 8, aims to help low-income families afford decent housing. The FMR of $1150 for ZIP 24401 is significantly lower than the market rent of $1,499. Landlords should be aware that voucher holders are typically limited to paying no more than 30% of their adjusted income towards rent, with the rest covered by the voucher. Therefore, while vouchers can ensure a reliable tenant and consistent rental income, they may not fully cover the market rent. Investors should prepare for a potential gap between voucher coverage and market rents, or consider adjusting their property pricing to align more closely with the FMR.
In conclusion, ZIP 24401 presents both opportunities and challenges for real estate investors. The FMR and rental rate percentages offer a starting point for understanding the local market dynamics, but further investigation into mortgage specifics, competition, and voucher policies is necessary for informed decision-making.
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.