Location: Pittsylvania County-Danville city, VA | Metro: Halifax County, VA
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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $102,544 | 0.92% | C |
| 3BR | $1,230 | $177,175 | 0.69% | D |
| 4BR | $1,490 | $239,022 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $910 for ZIP 24592 can cover the mortgage on a $149,275 home. The data shows that the median home value in South Boston, VA is $156,100, which is slightly below the purchase price of the home in question. This suggests that finding a comparable home at a lower price could be feasible. However, it's important to consider the mortgage payment on a $149,275 home. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly principal and interest payment would be approximately $745. With an additional $165 allocated for property taxes and insurance, the total monthly cost would be around $910, aligning closely with the FMR.
The investor may also doubt if the 36.9% renter demand is sufficient. According to the available data, this percentage indicates a moderate level of rental activity. While it is not exceptionally high, it does suggest a stable demand for rental properties. The number of homes for sale in ZIP 24592, as reported by Zillow and Trulia, does not provide direct insight into the rental market size but implies a competitive residential market. Landlords should focus on maintaining attractive rental properties to meet this demand effectively.
Another concern could be whether Housing Choice Vouchers will keep pace with the market rents of $778. The FMR of $910 is higher than the current market rent, indicating that voucher holders may have some flexibility in covering the difference. However, the data does not specify the exact amount of vouchers available or their average value in ZIP 24592. To ensure long-term stability, landlords should monitor local housing authority announcements and trends in voucher utilization to anticipate any potential changes in subsidy levels.
In summary, while the data provides some assurance regarding the ability of FMR to cover mortgage costs and a moderate level of rental demand, there is limited information on the specifics of voucher programs and their alignment with market rents. Investors should conduct further research and stay informed about local real estate trends to make well-informed decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.