Location: Smyth County, VA | Metro: Kingsport-Bristol, TN-VA MSA
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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $138,753 | 0.76% | D |
| 3BR | $1,310 | $202,856 | 0.65% | D |
| 4BR | $1,610 | $254,288 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 24319 (Chilhowie, VA) might have several valid concerns regarding the feasibility of investing in properties there under the Section 8 program. Let's address these concerns head-on using the available data.
Will FMR $910 (zip FY 2024) cover the mortgage on a $189,990 home?
The Fair Market Rent (FMR) for ZIP 24319 is set at $910 per month for fiscal year 2024. To determine if this will sufficiently cover a mortgage payment, we must consider the prevailing interest rates and the term of the loan. Assuming a typical 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment on a $189,990 home would be approximately $1,035. This means that the FMR of $910 would not fully cover the mortgage payment, leaving a shortfall of $125 per month. However, this analysis does not account for potential property appreciation, tax benefits, or other financial advantages that can offset the initial shortfall.
Is there enough renter demand at 25.5%?
The rental vacancy rate for ZIP 24319 is reported at 25.5%. While this figure is higher than the national average, it suggests that there is still a significant portion of the housing stock occupied by renters. A higher vacancy rate could indicate a competitive market for landlords, but it also points to a robust demand for rental units. The key metric here is whether the number of renters willing to pay the FMR of $910 is sufficient to fill available units. The data does not provide a direct answer to this question, but a high vacancy rate typically indicates a healthy competition among landlords rather than a lack of demand.
Will vouchers keep pace with $822 market rents?
The market rent for ZIP 24319 is currently at $822 per month. Given that the FMR is slightly above this at $910, it is reasonable to expect that the voucher amounts will align closely with market conditions. However, the effectiveness of vouchers in covering the full rent depends on the individual circumstances of the tenants and the specific rules of the local housing authority. In general, the goal of the Section 8 program is to ensure that voucher amounts reflect fair market values, so the expectation is that they should keep pace with the $822 market rents.
In summary, while the FMR of $910 may not fully cover the mortgage payment on a $189,990 home, other financial benefits could make up for the shortfall. The 25.5% rental vacancy rate indicates a competitive market but also suggests ongoing renter demand. Lastly, vouchers are expected to keep pace with the current market rents of $822, though individual tenant eligibility plays a role in actual payments. These insights provide a balanced view of the investment landscape in Chilhowie, VA.
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.