Location: Harrisonburg, VA | Metro: Harrisonburg, VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 24471 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. As of the fiscal year 2024, the FMR stands at $940, whereas the current market rent for all property types averages at $1,850. This represents a gap of $910, or approximately 96.8%.
The disparity indicates that landlords accepting Section 8 vouchers will receive significantly less than the open-market rate. Given the context of 11.8% of renters and a median home value of $407,027, the lower FMR poses a challenge for landlords aiming to cover operational costs and achieve profitability. The median income in the area is $97,396, which suggests that residents might be financially capable of paying higher rents, further highlighting the potential financial strain on landlords who accept voucher tenants.
Landlords must carefully weigh the benefits of long-term stability provided by voucher tenants against the immediate financial impact of renting below market rates. This scenario makes ZIP 24471 a challenging environment for small-portfolio investors seeking high yields, as they would need to adjust their expectations or explore alternative investment strategies to compensate for the lower rental income.
Data Sources: FMR data from HUD (2027). 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.