Location: Smyth 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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $178,868 | 0.6% | D |
| 3BR | $1,360 | $227,436 | 0.6% | F |
| 4BR | $1,450 | $304,448 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 24236 does not favor landlords. The Fair Market Rent (FMR) set at $910 for fiscal year 2024 contrasts sharply with the actual market rent of $746, based on Census ACS data. This discrepancy indicates that landlords might struggle to charge the higher FMR rate without losing tenants to more competitively priced options.
Acquisition of properties in this area remains relatively affordable. With a median home value of $206,439, potential investors can acquire homes at a reasonable cost. However, the lack of data on days on market (DOM) and the percentage of homes needing price reductions suggests a less active housing market, which could impact resale opportunities or the ease of acquiring new properties.
Tenant demand is modest but present. The Damascus, VA, and Smyth County, VA, metro area has a total population of 3,109, with 22.8% of residents being renters. While the number of potential renters is limited, it provides a steady base for those interested in managing smaller portfolios or single properties.
Verdict: ZIP 24236 offers an affordable entry point for property acquisition with a median home value of $206,439. However, the rent math is unfavorable due to the significant gap between the set FMR of $910 and the actual market rent of $746. Tenant demand exists but is limited, given the small population size and the moderate renter share. Investors should proceed with caution, focusing on cost-effective acquisitions and realistic rental pricing strategies to ensure profitability.
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.