Section 8 Fair Market Rent (FMR) for ZIP 24402 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 24402, located in Staunton, VA, can be classified on two axes: yield and stability.

Yield: The Fair Market Rent (FMR) for ZIP 24402 in fiscal year 2024 is set at $1,110. Given that the median home value is $255,666 and the median rent is $1,650, this suggests a relatively high yield market for landlords. However, the discrepancy between the FMR and median rent indicates a strong rental market, potentially due to limited supply or high demand. This makes ZIP 24402 a high-yield market for those willing to navigate the complexities of the Section 8 voucher program.

Stability: The median household income in Staunton, VA (ZIP 24402) is $59,402, which is 18.1% higher than it was five years ago. While this indicates a growing economy, the lack of specific data on the percentage of renters, days on market (DOM), and income stability suggests that the market is moderately stable. The rising median home value by 37.4% over five years also points towards a positive trend in the real estate market, but without more granular data on vacancy rates and renter income, it's challenging to make a definitive call on stability.

In conclusion, ZIP 24402 leans towards being a high-yield market, driven by the significant difference between the FMR and median rent. However, the stability of this market remains somewhat uncertain, given the limited data on key metrics such as renter demographics and days on market. For small-portfolio investors, this could represent an opportunity for steady cash flow, albeit with some level of risk associated with market volatility.

Data Sources: FMR data from HUD (2027).

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.