Location: Henry County-Martinsville city, 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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $168,670 | 0.56% | F |
| 3BR | $1,260 | $264,732 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 24102 (Henry, VA) might raise several concerns. Let's address them with the available data.
Will FMR $910 (zip FY 2024) cover the mortgage on a $225,423 home?
The Fair Market Rent (FMR) for ZIP 24102 is set at $910 per month for FY 2024. To determine if this covers the mortgage on a $225,423 home, we need to consider the prevailing mortgage rates. According to recent data, the average 30-year fixed mortgage rate is around 6.5%. Using this rate, the monthly mortgage payment on a $225,423 home would be approximately $1,450. Therefore, the FMR of $910 would not be sufficient to cover the mortgage payment alone, indicating that additional income sources or a higher rent rate would be necessary to make the investment profitable.
Is there enough renter demand at 10.1%?
The rental demand percentage in ZIP 24102 is 10.1%, based on the proportion of households that are renters. This figure suggests a modest rental market. However, the number of rental properties listed on platforms like Trulia and HotPads indicates a limited supply of rental units. With only 0 houses for rent currently listed on HotPads, there seems to be an opportunity for landlords to fill a gap in the market. The demand for rentals, while not high, does exist, and the competition is relatively low, making it a potentially viable option for investors willing to cater to the local needs.
Will vouchers keep pace with $574 market rents?
The market rent for a two-bedroom apartment in ZIP 24102 is typically between $300 and $499, but let's assume the higher end of the spectrum at $574 to address the concern. The availability of housing vouchers can fluctuate, and the current trends indicate that they may not always keep pace with market rents. While the Federal Housing Administration (FHA) provides vouchers, their value can lag behind actual market rates. Investors should be prepared for the possibility that voucher recipients might not cover the full $574 rent, requiring supplementary income strategies or adjustments in pricing to accommodate this demographic.
The data reveals that while there are challenges in terms of covering mortgage costs and ensuring consistent rental income, there are also opportunities to serve a niche market with fewer rental options. Investors should carefully evaluate their risk tolerance and consider diversifying their investment strategy to mitigate potential shortfalls.
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.