Location: Bath County, VA | Metro: Bath County, VA
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $145,903 | 0.53% | F |
| 2BR | $940 | $187,814 | 0.5% | F |
| 3BR | $1,130 | $275,553 | 0.41% | F |
| 4BR | $1,460 | $393,537 | 0.37% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 24460 (Millboro, VA) for Section 8 must follow a structured decision-making process. The first question to address is whether the Fair Market Rent (FMR) of $930 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $233,437. To determine this, calculate the monthly mortgage payment, including principal, interest, taxes, and insurance. If the FMR is sufficient to cover these costs, proceed to the next question.
The second question involves comparing the market rent of $690 (based on Census ACS data) to the FMR. If the market rent is above the FMR, then the property is undervalued relative to the local rental market, which is a positive indicator. If the market rent is equal to the FMR, the property is fairly priced. However, if the market rent is below the FMR, the landlord risks accepting a lower rent than what the market could bear, which is less favorable.
The third question pertains to the demand for rental properties. In Millboro, VA, 22.5% of residents are renters, and the days on the market (DOM) is listed as "N/A," indicating either a very quick sale or an insufficient sample size for accurate measurement. Given that 22.5% of residents are already renting, there is established demand for rental units. However, without specific DOM data, it's challenging to gauge the urgency of rental demand.
Decision Tree:
In conclusion, for a landlord asking whether they should buy in ZIP 24460 for Section 8, the decision hinges on whether the FMR sufficiently covers debt service, the relationship between market rent and FMR, and the overall demand for rental properties. Use the provided figures to make a well-informed decision.
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.