Location: Wythe County, VA | Metro: Smyth 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 | $780 |
| 1 Bedroom | $820 |
| 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 | $159,403 | 0.59% | F |
| 3BR | $1,260 | $217,780 | 0.58% | F |
| 4BR | $1,460 | $284,119 | 0.51% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 24368 (Rural Retreat, VA) on the axes of yield and stability reveals a unique market scenario. With a Fair Market Rent (FMR) of $910 for the metro area in fiscal year 2026, the market rent stands at $773, indicating a potential yield gap that landlords can capitalize on. However, the median home value of $212,058 suggests that the property investment costs are relatively high compared to the rental income.
To assess yield, consider the difference between the FMR and the market rent. A landlord could aim for the higher FMR, which is $910, thereby achieving a premium over the current market rate of $773. This strategy would enhance yield but comes with the risk of higher vacancy rates if the market cannot sustain the higher rent.
Evaluating stability, the ZIP code has only 14.1% of residents classified as renters, which is a low percentage, suggesting that the market may be less stable due to limited demand. The lack of data on days on market (DOM) makes it difficult to gauge how quickly properties might be rented out, adding another layer of uncertainty. Additionally, the median household income of $73,614 provides insight into the financial capacity of the local population to afford higher rents, which is crucial for maintaining occupancy rates.
Given these factors, ZIP 24368 leans towards being a steady-cashflow zone. The low percentage of renters and moderate income levels indicate a market that may struggle with high turnover and difficulty in attracting tenants willing to pay above-market rents. While there is potential for higher yields by targeting the FMR, the risks associated with lower stability make it unsuitable for high-risk strategies such as flipping properties for quick profits.
A prudent approach for landlords and small-portfolio investors would be to focus on long-term, consistent cash flow rather than short-term gains. They should aim to keep rents close to the market rate of $773 to ensure occupancy and avoid prolonged vacancies. This will help maintain a steady stream of rental income, which is critical given the relatively high cost of property investment in the area.
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.