Location: Russell 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 | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $36,665 | 3.85% | A+ |
| 3BR | $1,740 | $40,109 | 4.34% | A+ |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 24237, centered around Dante, VA, reveals a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $1,370 for fiscal year 2026, is higher than the market rent of $1,275 according to the latest Census ACS data. This creates a gap of $95, or approximately 7.5%, which benefits voucher tenants and landlords alike.
Voucher tenants benefit from the higher FMR because it allows them to secure housing that would otherwise be out of reach based on the open-market rates. For landlords, this means a guaranteed rental income that exceeds the typical market rate. The stability of government-backed vouchers ensures consistent cash flow, making this an attractive yield play. With 25.5% of residents renting and a median home value of $38,332, the local housing market is already primed for rental investments. Additionally, the median income of $33,095 suggests that many residents rely on assistance programs to afford housing.
In this context, landlords can leverage the higher FMR to offer competitive rents while still maintaining profitability. It's important to note that accepting Section 8 tenants comes with its own set of responsibilities and compliance requirements. However, the financial upside is clear: a steady stream of income that is above the average market rent, without the risk of vacancy or non-payment. This makes the area particularly appealing for those looking to invest in rental properties with a focus on affordable housing.
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.