Location: Grayson County, VA | Metro: Grayson 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $208,015 | 0.45% | F |
| 3BR | $1,270 | $242,223 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $910 for ZIP 24363 (Mouth of Wilson, VA) in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $224,213. To address this concern, let's consider the typical monthly mortgage payment for a home of that value. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment would be approximately $1,075. This means that the FMR of $910 falls short by around $165 per month. However, it's important to note that FMR is just one metric; actual rents can vary based on location and property condition.
The investor may also doubt if there is sufficient rental demand given that only 11.0% of households in ZIP 24363 are renters. While this percentage suggests a relatively low demand for rental properties compared to owner-occupied homes, it does not necessarily indicate a lack of opportunity. The percentage of renters is often influenced by factors such as job availability, housing costs, and lifestyle preferences. In ZIP 24363, the tourism industry could drive seasonal rental demand, which is not captured by the static percentage of renters.
Another objection could be whether Housing Choice Vouchers will keep up with the market rents, which are currently at $829. The voucher amount is tied to the FMR, which is expected to rise to $910 in fiscal year 2026. If the market rents remain stable or increase slightly, vouchers should continue to be a viable option for tenants. However, if market rents surge significantly beyond the projected FMR, landlords might face challenges in covering their expenses solely through voucher payments. It's crucial to monitor local economic trends and housing market conditions to predict future rent increases accurately.
In conclusion, while the data provides insights into the financial viability of investing in ZIP 24363, some uncertainties remain. The FMR does not fully cover the mortgage on a median-priced home, and the percentage of renters is relatively low. Nonetheless, the potential for seasonal rental demand and the alignment of voucher amounts with projected FMRs offer promising opportunities for landlords and small-portfolio investors willing to navigate these challenges.
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.