Location: Smyth 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 | $810 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $97,865 | 1.1% | B |
| 3BR | $1,340 | $169,446 | 0.79% | D |
U.S. Census Bureau data (2024)
Sugar Grove, VA, located in ZIP code 24375, stands out within Smyth County due to its unique demographic and economic characteristics. With a total population of 1,711, the area has a relatively low rental rate at 24.3%, indicating that most residents prefer homeownership. This preference is further supported by the median home value of $140,088, which is significantly higher than the median income of $53,571. The disparity between these figures suggests a strong local economy that supports both property ownership and rental activities.
The voucher economics in Sugar Grove present a compelling opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,070, whereas the current market rent based on Census ACS data is only $830. This $240 difference per month represents a significant financial incentive for property owners willing to participate in the Section 8 program. Landlords can expect a steady stream of income, backed by the government, while maintaining rents slightly above the current market rate.
Based on the available data, the ZIP code 24375 appears to be stable rather than transitional. The population size and the ratio of renters to homeowners indicate a settled community where residents have established roots. The median income, though lower than the median home value, is consistent enough to suggest a sustainable local economy. Therefore, investors looking for a secure and predictable market should consider Sugar Grove, VA, as it offers a reliable environment for real estate investments, especially those involving Section 8 vouchers.
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.