Location: Tazewell County, VA | Metro: Smyth County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis for ZIP 24316 focuses on the disparity between the Fair Market Rent (FMR) set at $930 for metro FY 2026 and the lack of available data for market rents. This gap is significant as it indicates that the FMR is based on federal guidelines, while the local market rents remain undefined.
In ZIP 24316, the median household income is listed as N/A, and the median home value is also not specified. However, the area has a median age of 59.5 years, suggesting a predominantly older population. Additionally, the poverty rate is 0%, indicating a relatively affluent community. Despite these figures, the absence of specific market rent data complicates the analysis.
The thesis revolves around the difference between the FMR and the market rent. Given that the FMR is $930 and there is no market rent data, we cannot calculate the exact percentage gap. However, the implications are clear: if the market rent were to be lower than $930, voucher tenants would represent a yield play for landlords. Conversely, if the market rent exceeds $930, landlords accepting voucher tenants would incur a cost below open-market rates, potentially reducing their profitability.
The context of ZIP 24316 is characterized by a very small population of only 45 residents, making it challenging to gather reliable market data. With no median income or home value data available, the area lacks comprehensive economic indicators. This scarcity of data points underscores the importance of relying on FMR as a benchmark for rental properties.
Landlords and small-portfolio investors must consider the federal guidelines when setting rents in ZIP 24316. Accepting voucher tenants could provide a stable income source, especially if the local market rents are indeed lower than the FMR. However, if market rents surpass $930, landlords might face a decision to either accept lower returns or seek alternative tenant types.
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.