Location: Alleghany County-Clifton Forge city-Covington city, VA | Metro: Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmetro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 24448 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1,000 per month for fiscal year 2026. This figure is specific to this ZIP code, reflecting the localized rental market conditions.
However, the local market rent for a similar unit is considerably lower, averaging $715 according to the Census ACS. This discrepancy means that landlords should not expect to charge their tenants the SAFMR rate for a two-bedroom property in this area.
A voucher payment under Section 8 works by covering the difference between the tenant's contribution and the actual rent. The tenant's portion is typically 30% of their income. If we assume an average monthly income for a tenant eligible for Section 8, their contribution would be around $215 based on the local market rent of $715. This leaves a remaining amount of $495 to be covered by the program.
In addition to the base rent, Section 8 also includes utility allowances. These vary but generally add a small percentage to the total reimbursement. For simplicity, let’s assume an additional $100 for utilities, bringing the total reimbursement to $595 per month for a two-bedroom unit.
This calculation reveals a significant gap between the SAFMR rate and what a landlord will actually receive from the Section 8 program. At $1,000, the SAFMR is well above the local market rent and the reimbursement rate. Therefore, landlords accepting Section 8 vouchers in ZIP 24448 can expect a reimbursement of approximately $595 for a two-bedroom unit, which is below the SAFMR but still competitive within the local market.
The reimbursement gap, or surplus, in this case is a deficit. Landlords will have to adjust their expectations and possibly their rental rates to align with the Section 8 reimbursement levels. This means a landlord renting a two-bedroom unit at the local market rate of $715 can expect to be reimbursed $595, leaving them with a shortfall of $120 per month unless they reduce their asking price to match the reimbursement level.
To summarize, landlords in ZIP 24448 should understand that while the SAFMR for a two-bedroom unit is $1,000, the effective reimbursement rate from Section 8 is likely to be around $595 per month. This rate is based on the local market rent and includes both the tenant's contribution and utility allowances. Consequently, landlords must manage their expectations and possibly adjust their rents to avoid financial loss when participating in the Section 8 program.
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.