Location: Alleghany County-Clifton Forge city-Covington city, VA | Metro: Roanoke, VA HUD Metro 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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $950 | $83,905 | 1.13% | B |
| 2BR | $1,130 | $110,044 | 1.03% | B |
| 3BR | $1,570 | $186,646 | 0.84% | C |
| 4BR | $1,900 | $234,323 | 0.81% | C |
| 5BR | $2,204 | $257,856 | 0.85% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 24426, Covington, VA, within Alleghany County, can be dissected into several key components to understand the financial implications for landlords. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $910. This figure represents the maximum amount that the government will pay for a rental unit under the Section 8 program.
Local market rents, according to Census ACS data, stand at $793 for a similar two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which could be beneficial for landlords participating in the program. However, it's important to note that the actual payment received by landlords is determined by a combination of the SAFMR and the tenant's portion of the rent, along with utility allowances.
To walk through the process, let's assume a landlord has a two-bedroom apartment listed at the market rate of $793. If a tenant with a Section 8 voucher moves in, the government will cover the difference between the market rate and the tenant's portion of the rent. The tenant's portion is generally calculated as 30% of their adjusted income. For example, if the tenant's adjusted income is $1,000 per month, they would contribute $300 towards the rent ($1,000 x 0.3).
This leaves the landlord with a reimbursement from the government of $693 ($793 - $300). However, the SAFMR of $910 is higher than the market rate of $793, meaning the landlord is not losing out on potential income by renting to a Section 8 participant. In addition, utility allowances are also provided by the government, which can range from $150 to $350 depending on the season and local energy costs. For simplicity, let's use an average utility allowance of $250.
Therefore, the total reimbursement a landlord might receive for a two-bedroom apartment would be $943 ($693 + $250). This exceeds the market rate of $793, indicating a surplus of $150 for the landlord. This surplus provides an additional buffer for unexpected maintenance costs or other expenses associated with property management.
In conclusion, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 24426 under the Section 8 program is a surplus of $150. Landlords should consider this when evaluating the financial benefits of participating in the program, especially given the higher SAFMR compared to the local market rent.
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.