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 | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $362,165 | 0.5% | F |
| 4BR | $1,990 | $486,353 | 0.41% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 24421, located in Staunton-Stuarts Draft, VA MSA metro, reveals several key insights. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1,120. In comparison, the Census American Community Survey (ACS) reports the average market rent at $1,291. This indicates that voucher tenants will generally cashflow at FMR levels but will do so marginally, given the slight gap between FMR and market rents.
To further understand the investment potential, consider the median home value in ZIP 24421, which stands at $347,786. Using this figure, we can derive a rent-to-price ratio. With an average market rent of $1,291, the annual rent would be approximately $15,492. Dividing this by the median home value gives us a rent-to-price ratio of about 4.4%. This suggests that rental income is relatively low compared to property values, indicating that the primary driver of investment returns in this area is likely to be appreciation rather than rental yield alone.
The dynamics of days on market (DOM) and the percentage of price cuts are not applicable in this scenario, as these metrics are typically used to gauge the performance of the housing market, particularly for sales properties. Since our focus is on rental properties and the viability of Section 8 vouchers, these figures are not relevant. However, the strong alignment between FMR and market rent means that landlords can expect steady demand from voucher holders without significant financial strain.
In conclusion, the strongest investor angle in ZIP 24421 is appreciation. Given the marginal cashflow at FMR and the relatively high median home value, investors should anticipate that the primary benefit will come from the long-term growth in property values rather than immediate rental income. This makes it an attractive location for those looking to build a stable, appreciating portfolio over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.