Location: Pittsylvania County-Danville city, VA | Metro: Pittsylvania County-Danville 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 | $660 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $140,019 | 0.67% | D |
| 3BR | $1,290 | $212,135 | 0.61% | D |
| 4BR | $1,430 | $259,613 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 24531, which encompasses Chatham, VA, is built around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $910, whereas the Census ACS data indicates that the market rent stands at $830. This creates a gap of $80, or approximately 9.88%, where landlords can receive higher rents through the Section 8 voucher program than what the open market offers.
In this scenario, landlords and small-portfolio investors should consider the area a yield play. The opportunity lies in the ability to charge rents closer to the FMR without having to compete with the lower market rates. Given that only 22.9% of residents are renters in Chatham, VA, there is less competition among landlords for tenants, making it easier to attract voucher holders who can afford the higher rent due to government subsidies.
The median home value in Chatham, VA, is $170,729, and the median household income is $43,333. These figures provide a backdrop against which the rental market operates. With a median income that is relatively low, the demand for affordable housing supported by Section 8 vouchers is likely to be strong. Landlords who participate in the program can benefit from a steady stream of income that exceeds the local market rate, thereby improving their investment yields.
However, there is a downside to housing voucher tenants at rates below the open market. While the FMR ensures a higher rent than the market rate, landlords must also factor in the administrative burden and potential delays associated with the voucher program. Additionally, the quality of the property may need to meet certain standards to qualify for the program, which could necessitate upgrades or maintenance that are not required when renting at market rates.
To summarize, the gap between the FMR and market rent in Chatham, VA, makes it a favorable environment for landlords willing to navigate the Section 8 program. It presents an opportunity to increase rental income by 9.88%, compared to the local market, while serving a community with significant needs for affordable housing solutions.
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.