Location: Rockbridge County-Buena Vista city-Lexington city, VA | Metro: Rockbridge County-Buena Vista city-Lexington city, VA HUD Nonmetro FMR Area
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 | $950 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $155,522 | 0.72% | D |
| 3BR | $1,550 | $213,089 | 0.73% | D |
| 4BR | $1,870 | $264,085 | 0.71% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 24416, located in Buena Vista, Virginia, are significant. Tenant turnover is a notable concern, with the market rent at $913 being notably lower than the Fair Market Rent (FMR) of $1,040 for the metro area in fiscal year 2026. This discrepancy can lead to tenants leaving when they find higher-paying jobs or move to more affordable housing options. Vacancy exposure is another critical issue, as the number of days on the market (DOM) is not available, which can indicate an unpredictable rental market. Furthermore, the deferred maintenance exposure is substantial, considering the typical home value of $195,278 and the median income of $54,882. Landlords might face challenges in maintaining properties to acceptable standards without incurring significant costs that may not be fully covered by the rental income.
Despite these risks, the high renter density in the area presents a favorable opportunity. With 39.1% of residents being renters, there is a strong likelihood of consistent voucher demand. This high percentage of renters suggests a robust market for Section 8 housing, which can help mitigate the risks associated with tenant turnover and vacancy exposure. The local economy and the availability of rental housing play crucial roles in ensuring that there will always be a need for affordable housing options, thereby supporting a steady stream of potential tenants.
In conclusion, the risk for a first-time Section 8 landlord in ZIP 24416 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and property maintenance, the high concentration of renters in the area provides a solid foundation for demand. This balance between risk and opportunity makes it a worthwhile consideration for those willing to manage the inherent challenges effectively.
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.