Location: Patrick County, VA | Metro: Franklin County, VA HUD Metro 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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $191,241 | 0.49% | F |
| 3BR | $1,300 | $274,798 | 0.47% | F |
| 4BR | $1,580 | $338,434 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether investing in ZIP 24088, Ferrum, VA, is financially viable. Here are three common concerns and the data to address them.
Objection 1: Will FMR $910 (zip FY 2024) cover the mortgage on a $251,902 home?
The Fair Market Rent (FMR) for ZIP 24088 is set at $910 per month for fiscal year 2024. To determine if this will cover the mortgage on a home priced at $251,902, we need to consider the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment would be approximately $1,215. This means that the FMR alone would not cover the mortgage payment, leaving a shortfall of $305 per month. However, it's important to note that many landlords can secure tenants willing to pay above the FMR, especially if the property offers amenities or is in high demand.
Objection 2: Is there enough renter demand at 22.1%?
Renter occupancy stands at 22.1% in ZIP 24088. While this figure is lower than some other areas, it does indicate that there is a significant portion of the population renting. The key here is understanding the local rental market dynamics. A lower percentage of renters could suggest a competitive market, but it also means that there are fewer properties available for rent, potentially increasing the demand for those that do exist. Additionally, the median age of residents is relatively young, which could translate into higher mobility and thus, a steady stream of potential tenants.
Objection 3: Will vouchers keep pace with $643 market rents?
The average market rent in ZIP 24088 is $643 per month. The Housing Choice Voucher program aims to subsidize rents up to the FMR level. Given that the FMR is $910, vouchers should theoretically cover most market rents. However, the actual amount paid by vouchers can vary based on the tenant's income and other factors. If the voucher payment is less than the market rent, landlords may face the difference. In ZIP 24088, the number of active vouchers is limited, which could mean competition among landlords for these subsidized tenants. It's crucial to monitor the local housing authority's policies and any changes in voucher amounts to ensure they align with your investment goals.
The data provides insights into the financial viability of investing in ZIP 24088, but it's essential to consider the broader economic context and trends. For instance, the growth in local employment and education sectors could positively impact the rental market. Always perform due diligence and consult with local real estate experts to make informed decisions.
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.