Location: Wise County-Norton city, VA | Metro: Kingsport-Bristol, TN-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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $87,903 | 1.14% | B |
| 3BR | $1,330 | $146,708 | 0.91% | C |
| 4BR | $1,530 | $222,593 | 0.69% | D |
U.S. Census Bureau data (2024)
ZIP 24219, located in Big Stone Gap, VA, within the Wise County-Norton city, VA HUD Nonmetro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2024, the FMR for ZIP 24219 is $910, whereas the current market rent stands at $794. This $116 difference per unit annually ensures that landlords can maintain a steady and reliable cash flow even when market conditions fluctuate.
The median home value in ZIP 24219 is $137,427, which indicates that property values are relatively stable and affordable. This stability reduces the risk of sudden drops in rental income due to decreased property values. Moreover, the low price-cut share of 0.2% suggests that landlords do not need to reduce their asking rents frequently to attract tenants, further supporting the cash-flow anchor role.
While the median income of $55,252 and a renter share of 30.9% might seem like factors for an appreciation play or diversification, these figures are more indicative of a community that relies on stable rental incomes rather than speculative growth. Given the non-metro status of the area, appreciation plays are less likely to yield significant returns compared to more urbanized regions. Therefore, focusing on the cash flow provided by the guaranteed higher rents through the Section 8 program is the most prudent approach.
In summary, ZIP 24219 is best suited as a cash-flow anchor in a Section 8 portfolio due to the substantial difference between the FMR and market rent, combined with stable property values and minimal need for price adjustments. Landlords and small-portfolio investors should prioritize properties in this ZIP code for consistent financial performance.
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.