Location: Lee County, VA | Metro: Lee 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 | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $71,091 | 1.34% | A |
| 3BR | $1,300 | $108,865 | 1.19% | B |
| 4BR | $1,330 | $177,961 | 0.75% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 24277, which encompasses Pennington Gap, VA, stands at $31,737. This figure is critical when assessing the ability of residents to afford housing at the market rate. The Census American Community Survey (ACS) reports the market rate for rentals in this area at $772 per month. Given the median income, this suggests that a significant portion of households would struggle to meet the market rate without substantial financial strain.
To put this into perspective, let’s consider the federal payment standard for housing vouchers, which is set at $910 for the fiscal year 2026. This amount is higher than the market rate but still represents a considerable expense for the average household. A household earning the median income would need to allocate nearly 30% of their annual income towards rent at the market rate, and close to 35% if they were to use a voucher. These percentages highlight the affordability gap faced by many residents.
With 35.1% of the 5,839 population being renters, there is a notable demand for affordable housing. However, the limited financial capacity of these households means that competition among landlords for tenants who can pay the full market rate is likely to be fierce. Landlords must be prepared to offer competitive pricing or consider accepting housing vouchers as a way to attract tenants.
The takeaway for landlords is clear: while there is a segment of the market willing to pay the full market rate of $772, the majority of potential tenants may require assistance through vouchers. Accepting vouchers at the $910 standard can provide a steady stream of reliable tenants, though it may mean less immediate profit compared to cash-paying tenants. Landlords should weigh the benefits of guaranteed rental income against the administrative complexity of working with vouchers to determine their strategy.
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.