Location: Lee County, 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 | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $175,406 | 0.74% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 24221 in Lee County, VA metro, reveals that the HUD Fair Market Rent (FMR) for fiscal year 2024 is set at $910. This figure is crucial for understanding the financial landscape for landlords and small-portfolio investors who rely on Section 8 vouchers.
Unfortunately, the current market rent for the area is not available, which makes direct comparison challenging. However, the HUD FMR serves as a reliable benchmark for rental pricing, especially when dealing with voucher tenants. In ZIP 24221, voucher tenants will generally cashflow at the FMR rate, given the low market rent expectations and the high subsidy provided by the government.
The median home value in the area is $155,543, indicating a relatively affordable housing market. To derive the rent-to-price ratio, we can use the HUD FMR as a proxy for typical rental rates. A quick calculation shows that the annual rent at $910 per month equates to $10,920, which is approximately 7% of the median home value. This suggests a strong alignment between rental income and property values, making it an attractive investment for those looking to balance rental income with potential property appreciation.
Note that the days on market (DOM) and price cut share data are currently unavailable. However, these metrics would be useful in assessing the overall health of the real estate market and the ease of finding tenants. Given the lack of such data, we must rely on the FMR and median home value to guide our analysis.
The strongest investor angle in ZIP 24221 is likely to be cashflow. The HUD FMR provides a solid baseline for rental income, ensuring that voucher tenants will cover a significant portion of the landlord's expenses, including mortgage payments and maintenance costs. This stability in cashflow is particularly beneficial for small-portfolio investors who seek consistent returns without the need for premium units or extensive renovations.
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.