Location: Buckingham County, VA | Metro: Charlottesville, 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 | $1,280 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $184,238 | 0.9% | C |
| 3BR | $2,000 | $244,782 | 0.82% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1270 for ZIP 24553 (Gladstone, VA) can adequately cover the mortgage on a $230,417 home. According to recent housing market data, the median sales price in ZIP 24553 is approximately $198,168. At a typical 30-year fixed mortgage rate of around 6.16%, the estimated monthly payment would be $1,288. This figure closely aligns with the FMR, indicating that a rental income of $1270 could indeed cover the mortgage, especially if property taxes and insurance are factored into the total monthly expenses.
The 21.5% rental market demand in ZIP 24553 may also raise concerns. However, it's important to note that the rental inventory in this area is relatively low, with only 11 units listed as of the latest data. This suggests a moderate supply level, which can support rental prices and demand. While 21.5% may seem low compared to more densely populated areas, the limited supply means that there is likely sufficient demand among renters who prefer the quieter environment that ZIP 24553 offers.
Regarding the use of Section 8 vouchers, the data does not specify how well voucher amounts keep pace with market rents in ZIP 24553. Nationally, voucher amounts can sometimes lag behind market increases, but in areas with lower overall costs like Gladstone, the gap may be less pronounced. Investors should monitor local trends and communicate directly with local housing authorities to ensure they understand any potential discrepancies between voucher payments and market rents.
In summary, while there are valid concerns regarding mortgage coverage, rental demand, and voucher adequacy, the data indicates that ZIP 24553 can support a Section 8 investment strategy. The key will be staying informed about local market conditions and adjusting expectations accordingly.
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.