Location: Pittsylvania County-Danville city, VA | Metro: Henry County-Martinsville city, VA HUD Nonmetro FMR Area
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 | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $132,960 | 0.81% | C |
| 3BR | $1,350 | $201,420 | 0.67% | D |
U.S. Census Bureau data (2024)
ZIP 24054, located in Axton, VA, within the Pittsylvania County-Danville city, VA HUD Nonmetro FMR Area, presents itself as a cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the favorable financial metrics associated with the area.
The Federal Market Rent (FMR) for the 24054 ZIP code for fiscal year 2026 is set at $1,000 for a metropolitan area. In contrast, the current market rent stands at $929, indicating a positive spread of $71 per unit annually. This spread ensures that properties in this ZIP code will generate higher rental income when leased through the Section 8 program compared to the open market. As a result, landlords can rely on steady cash flow from these units without worrying about fluctuations in local rental rates.
Beyond the immediate cash flow benefits, the median home value in ZIP 24054 is $126,839. This relatively low valuation means that investment properties can be acquired at a reasonable cost, further enhancing the overall profitability of the portfolio. With the guaranteed rental income from the Section 8 program exceeding the market rent, landlords can achieve a solid return on their investment even if property values remain stable or only moderately increase over time.
The area's renter share of 23.7% and median income of $53,910 provide additional context for the investment strategy. While these figures suggest a moderate demand for rental properties, they do not significantly impact the cash-flow anchor classification due to the favorable spread between the FMR and market rent. The lower median income supports the presence of a substantial number of tenants eligible for the Section 8 program, thereby ensuring a consistent tenant pool for the properties.
In conclusion, ZIP 24054 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The $71 annual spread between the FMR and market rent guarantees higher rental income, while the median home value provides an affordable entry point for acquiring investment properties. Landlords and small-portfolio investors should consider this ZIP code for its ability to provide reliable and above-market rental returns.
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.