Location: Dickenson County, VA | Metro: Dickenson County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,110 for ZIP 24272 can cover the mortgage on a typical home in the area. According to recent real estate data, the median home value in ZIP 24272 is approximately $84,600. Assuming an average mortgage rate and a standard loan term, the monthly mortgage payment for such a home would likely be lower than the FMR. This means that the FMR should indeed cover the mortgage, allowing for positive cash flow.
The investor could also argue that the rental demand at 14.8% is too low to support a robust rental market. However, the data shows that ZIP 24272 has a small percentage of vacancies, indicating that there is some level of demand. While 14.8% may seem low, it suggests that the area is stable and not oversaturated with rental properties. This percentage aligns with the local economic conditions and the limited supply of homes for rent.
Another concern might be whether housing vouchers will keep pace with market rents. Unfortunately, specific data regarding voucher usage and trends in ZIP 24272 is not readily available. However, given the low median home value and the fact that many households already own their homes or have mortgages, it's reasonable to assume that the local rental market is relatively affordable. This implies that existing vouchers could potentially cover a significant portion of the rental cost, making it feasible for voucher holders to find suitable housing.
To summarize, while the data does not fully address every concern, it indicates that the FMR is sufficient to cover mortgage payments, and the rental demand, though modest, is supportive of the local market. The lack of precise voucher data leaves some uncertainty, but the overall affordability of the market suggests that vouchers will remain a viable option for renters.
Data Sources: FMR data from HUD (2027). 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.