Location: Carroll County-Galax city, VA | Metro: Carroll County-Galax city, VA HUD Nonmetro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 24381 are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $910 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will reimburse landlords for participating in the Section 8 program.
In contrast, the local market rent for a similar two-bedroom unit is considerably lower, at $599 per month according to the latest Census ACS data. This discrepancy highlights the importance of understanding how the voucher system operates financially.
A landlord who accepts a Section 8 voucher must be aware of the components that make up the total reimbursement. The voucher payment consists of two parts: the tenant's portion and the utility allowance. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,800 per month, the tenant would pay around $540 per month.
The remaining portion of the rent is covered by the housing authority, up to the SAFMR limit. In this case, if the tenant pays $540, the housing authority would cover the difference between the tenant's contribution and the SAFMR, which is $370 per month. This calculation assumes the total rent charged does not exceed the SAFMR limit of $910.
Utility allowances vary but generally range from $200 to $300 per month. For simplicity, let's use a midpoint figure of $250 per month. This allowance is designed to help offset the cost of utilities for the tenant, though it doesn't directly affect the landlord's reimbursement.
To summarize, the total reimbursement a landlord can expect for a two-bedroom unit in ZIP 24381 is the sum of the tenant's contribution and the housing authority's payment. Given the assumed figures, this would be $910 per month. However, since the local market rent is only $599, landlords accepting a Section 8 voucher in this area will typically see a surplus of $311 per month when the SAFMR is applied.
This surplus is significant and can help offset any administrative costs associated with the program. It also provides a buffer against potential delays in payments or other financial risks. Landlords should carefully consider these factors when deciding whether to participate in Section 8 for their properties in ZIP 24381.
Data Sources: FMR data from HUD (2027). 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.