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 | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,240 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $67,541 | 1.39% | A |
| 3BR | $1,240 | $125,729 | 0.99% | C |
| 4BR | $1,430 | $162,525 | 0.88% | C |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 24260 in Honaker, VA, comes with several inherent risks that potential landlords must consider. Firstly, tenant turnover poses a significant challenge due to the disparity between the market rent of $631 and the Fair Market Rent (FMR) of $910 for fiscal year 2026 in the metro area. This gap can lead to frequent changes in occupancy as tenants seek better rental deals or move to areas with higher FMRs.
Vacancy exposure is another critical factor, particularly concerning the days on market (DOM). The data indicates that the DOM is currently not available, which makes it difficult to predict how long a unit might remain vacant. A prolonged period of vacancy can significantly impact cash flow and profitability, especially when combined with lower market rents.
Deferred maintenance is also a concern, given the typical home value of $97,007 and a median income of $46,250. Landlords may face challenges in maintaining properties to meet Section 8 standards without overextending their financial resources. The cost of repairs and upgrades can quickly add up, potentially eroding profits and requiring substantial upfront investment.
However, these risks must be weighed against the high renter share of 22.8%, which typically correlates with increased demand for housing vouchers. In densely populated rental markets, there is often a greater pool of eligible tenants who rely on government assistance, ensuring a steady stream of applicants and reducing the likelihood of extended vacancies.
The combination of high renter density and the challenges associated with lower market rents and deferred maintenance presents a complex investment scenario. For a first-time Section 8 landlord, the risks are considerable, but the potential for a stable tenant base can mitigate some of these concerns. Given the data, the overall risk assessment for investing in Section 8 properties in ZIP 24260 in Honaker, VA, is moderate.
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.