Location: Bath County, VA | Metro: Alleghany County-Clifton Forge city-Covington 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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $140,279 | 0.72% | D |
| 3BR | $1,230 | $233,910 | 0.53% | F |
| 4BR | $1,560 | $337,723 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 24445 in Hot Springs, VA, is a modest-sized community with a total population of 2,332 residents. Approximately 30.3% of these residents are renters, indicating a significant but not overwhelming presence of rental housing. The median household income in this area stands at $51,500, which suggests a middle-class demographic. The median home value in ZIP 24445 is $224,023, reflecting an affordable housing market compared to many other regions.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 24445 is set at $980 for the metro fiscal year 2026. This figure is notably higher than the current market rent of $855, as reported by the Census Bureau's American Community Survey (ACS). This gap between the FMR and market rent can be advantageous for landlords participating in the Section 8 program, as it allows them to potentially receive above-market rents while still being covered by the government subsidy.
Given these economic conditions, ZIP 24445 could be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed income from the Section 8 program, combined with the potential to earn slightly above the market rate, makes this a stable investment choice. On the other hand, for hands-on investors looking to improve property values, the discrepancy between the FMR and market rent provides an opportunity to enhance properties and charge closer to the FMR, thereby increasing cash flow. However, such strategies require careful consideration of renovation costs and the local market's willingness to pay higher rents.
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.