Location: Russell County, VA | Metro: Russell 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $118,400 | 0.79% | D |
| 3BR | $1,210 | $209,138 | 0.58% | F |
| 4BR | $1,410 | $275,312 | 0.51% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 24266, Lebanon, Virginia, presents a unique setup for both short-term and long-term investors. With a median home value of $188,228, the area reflects a modest valuation that has seen minimal reductions in listing prices, with only 0.3% of listings being reduced. This indicates strong pricing power in the market, suggesting that homes are likely to retain their value or appreciate slightly over the next 12 to 24 months.
The median days on market (DOM) being listed as N/A could imply that homes are selling quickly, often before reaching the typical DOM period. Rapid sales can be a sign of a robust market where demand outstrips supply, further supporting the notion of stable or rising property values.
On the rental side, the forward market rent (FMR) for the Lebanon metro area in fiscal year 2026 is projected at $910. However, current market rents stand at $631 according to the Census ACS. This gap between the projected FMR and current market rents suggests an upward trend in rental prices, which could benefit landlords and small-portfolio investors. As rental prices increase, so too does the potential for higher rental income, making the investment in properties more attractive.
For long-hold investors, the setup in Lebanon, VA, implies a realistic appreciation thesis. The combination of a stable median home value, low percentage of price reductions, and the anticipated rise in rental prices all point towards a market that is poised for gradual growth. While significant spikes in value are not indicated, the steady state of the market and the increasing rental rates provide a solid foundation for continued appreciation.
Investors should note that the market conditions in Lebanon, VA, favor those who are willing to hold onto properties for longer periods. The modest median home value and the potential for rental price increases offer a balanced approach to both capital appreciation and income generation, making it a viable option for those looking to build a sustainable real estate portfolio.
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.