Location: Smyth 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 | $780 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $192,348 | 0.54% | F |
| 3BR | $1,300 | $223,989 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 24378 (Troutdale, VA) can be analyzed using the Fair Market Rent (FMR) and market rent figures for a 2BR property. The annualized FMR for a 2BR property is set at $990 per month, which equates to an annual rental income of $11,880. Using the median home value of $210,722, this implies a gross yield of approximately 5.64%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Property Value) * 100.
In contrast, the market rent for a 2BR property is listed at $949 per month, leading to an annual rental income of $11,388. When applied to the median home value, this results in a gross yield of about 5.40%. Thus, the FMR scenario offers a slightly higher gross yield compared to the market rent scenario.
Given the low renter density of 13.6%, it is unlikely that landlords would achieve the higher FMR-based gross yield consistently. Renter density is a key indicator of the demand for rental properties, and a lower density suggests fewer potential tenants willing to pay the higher FMR rates. Additionally, the lack of data on Days on Market (DOM) makes it difficult to assess how quickly a property might be rented out at either rate.
The market rent scenario, while offering a lower gross yield, is more reflective of the actual rental environment in Troutdale, VA. Landlords should consider the market rent figure when evaluating the potential returns of a property under Section 8, as it aligns better with the local rental market dynamics and tenant willingness to pay. In conclusion, while the FMR provides a benchmark, the market rent is a more practical metric for assessing the cap rate and gross yield in this ZIP code.
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.