Location: Pittsylvania County-Danville 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 | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $404,322 | 0.3% | F |
| 3BR | $1,680 | $438,467 | 0.38% | F |
| 4BR | $2,010 | $1,144,725 | 0.18% | F |
U.S. Census Bureau data (2024)
The market in ZIP 24137, Penhook, VA, reflects a dynamic equilibrium between supply and demand, leaning slightly towards a balanced but buyer-influenced scenario. The Fair Market Rent (FMR) stands at $970 for the fiscal year 2024, while the actual market rent is reported at $935 according to the Census ACS data. This indicates that the rental market is competitive, with landlords offering rents slightly below the benchmark set by the government to attract tenants.
The price-cut share, at just 0.2%, suggests that very few properties are being discounted, which can be interpreted as a sign of stable pricing. However, the lack of available data on days on market (DOM) means we cannot definitively assess how quickly homes are selling, though the low price-cut share implies that homes are likely moving off the market without significant reductions.
The median home value in Penhook, VA, is $521,088. This figure is crucial in understanding the local real estate landscape, indicating that homeownership is relatively expensive compared to the average rental cost. The 12.1% renter share reveals that the majority of residents own their homes, yet there remains a notable segment of renters. This could imply ongoing housing pressure as some residents may struggle to afford homeownership, leading them to remain in the rental market.
The interplay between these factors paints a picture of a market where demand is present but perhaps constrained by affordability. With rental prices below the FMR, it suggests that there might be enough rental units to meet demand without significant upward pressure on prices. However, the high median home value could indicate that new buyers face challenges entering the market, possibly due to limited inventory or financial constraints.
Landlords and small-portfolio investors should consider the balance between rental income and potential appreciation in property values. While rental yields may be modest given the low price-cut share and stable rental market, the high median home value hints at a potential for capital gains over the long term. This market appears to offer steady returns rather than explosive growth, suitable for those looking for consistent performance in their real estate investments.
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.