Location: Dickenson County, VA | Metro: Dickenson 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $85,363 | 1.1% | B |
| 3BR | $1,120 | $138,155 | 0.81% | C |
| 4BR | $1,430 | $193,333 | 0.74% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 24228, centered around Clintwood, VA, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910, while the current market rent based on Census ACS data stands at $747. This creates a gap of $163, or approximately 22%, between what voucher tenants can pay and the actual market rate.
This discrepancy makes Clintwood, VA a prime location for yield plays. With 26.8% of residents being renters and a median home value of $120,007, the local real estate market is indicative of a demand for affordable housing options. Voucher holders, who are guaranteed to receive their rental assistance payments directly from the government, provide a stable source of income for landlords. Even though the market rent is lower than the FMR, the guaranteed payment from the Section 8 program ensures that landlords receive a higher rent compared to the open market rate, thereby increasing their yield.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. Despite the higher rent compared to the open market, the median household income in Clintwood, VA is $49,116. Landlords must be prepared to manage properties in a way that aligns with the requirements of the Section 8 program, which includes regular inspections and maintenance to ensure the property meets minimum standards. These obligations, coupled with the fixed nature of rental increases, mean that landlords might face challenges in raising rents to keep up with inflation or increased costs of maintenance and management.
In summary, the gap between the FMR and market rent in ZIP 24228 presents a compelling case for landlords to consider the benefits of participating in the Section 8 program. While it offers a chance to increase yields above the open market rates, it also requires careful consideration of the ongoing responsibilities associated with the program.
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.