Location: Wise County-Norton city, VA | Metro: Wise County-Norton city, VA HUD Nonmetro FMR Area
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 | $720 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $78,368 | 1.2% | B |
| 3BR | $1,260 | $128,879 | 0.98% | C |
| 4BR | $1,460 | $180,013 | 0.81% | C |
U.S. Census Bureau data (2024)
In analyzing ZIP code 24273, which encompasses Norton, Virginia, for potential Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $960 cover the debt service on a property valued at $113,803?
Yes. The FMR of $960 is sufficient to cover the debt service on a property valued at $113,803, assuming typical financing terms. This indicates that a landlord can expect to break even or potentially make a profit if the property is rented at the FMR rate.
No. If the FMR does not sufficiently cover the debt service, then purchasing a property in this ZIP code for Section 8 would be financially unwise. Landlords need to ensure that the rental income meets or exceeds their mortgage payments and other expenses.
2) Is the market rent of $696 above, at, or below the FMR?
Above. If the market rent were above the FMR, landlords would still consider whether they can achieve higher rents outside of Section 8 to maximize profitability.
At. The market rent is exactly at the FMR, suggesting that there's no premium over the FMR. This means that landlords would be renting at the maximum allowable rate for Section 8, but they might face competition from non-Section 8 properties offering higher rents.
Below. With the market rent at $696, it is below the FMR of $960. This scenario presents an opportunity for landlords to attract tenants who qualify for Section 8 vouchers, as the lower market rent means that the difference between market rent and FMR can be used to incentivize tenants.
3) Are 40.9% of residents renters and is the number of days on the market (DOM) sufficient to meet demand?
It Depends. The 40.9% of residents being renters suggests a moderate level of demand. However, without specific data on the DOM, it's challenging to gauge how quickly properties are rented out. A high DOM could indicate a lack of demand, whereas a low DOM could suggest strong interest from potential tenants. If the DOM is low, this indicates that demand is likely sufficient to support a Section 8 investment.
To conclude, if the FMR covers the debt service, the market rent is below the FMR, and the DOM is low enough to ensure quick tenancy, then the answer is Yes. Landlords should proceed with confidence knowing that the financials align favorably with Section 8 guidelines and that there is sufficient demand to fill vacancies promptly. Otherwise, the decision leans towards No or It Depends, requiring further investigation into local market conditions and individual property costs.
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.