Location: Russell County, VA | Metro: Buchanan County, VA
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 | $940 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $75,852 | 1.24% | A |
| 3BR | $1,210 | $127,815 | 0.95% | C |
U.S. Census Bureau data (2024)
ZIP code 24225 is located in the rural county of Lee, Virginia. This area is characterized by a small, close-knit community with a total population of 1,791 residents. The neighborhood has a significant portion of its inhabitants as renters, making up 39.3% of the population. With a median household income of $27,826, it is evident that many residents rely on affordable housing solutions. The median home value in this ZIP code is $101,941, indicating that homeownership is relatively accessible compared to larger metropolitan areas.
Moving into the economic analysis of rental properties, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910. However, the actual market rent in ZIP 24225, according to the Census ACS, is significantly lower at $388 per month. This substantial gap between the FMR and the market rent suggests a strong opportunity for Section 8 investors in this region. Landlords can expect to receive a higher rental income through Section 8 vouchers than they would from typical market rates, which could lead to improved cash flow and profitability.
The question remains whether this ZIP code is suitable for a hands-off voucher operator or if it requires a more active, value-add approach. Given the low median income and the disparity between FMR and market rent, a hands-off operator could find success in maintaining a portfolio of properties that meet the basic requirements for Section 8 tenancy. On the other hand, a value-add investor might consider improving property conditions or amenities to attract tenants willing to pay closer to the FMR, thus increasing potential returns. Both strategies have merit, but the choice will depend on the investor's goals and risk tolerance.
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.