Location: Tazewell County, VA | Metro: Tazewell 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $74,562 | 1.41% | A |
| 3BR | $1,290 | $158,210 | 0.82% | C |
| 4BR | $1,410 | $243,839 | 0.58% | F |
| 5BR | $1,636 | $348,102 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 24605, centered around Bluefield, VA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,020, while the Census ACS data indicates that the average market rent is $880. This means there is a gap of $140, or approximately 16.7%, between what the government deems fair and what landlords can currently charge in the open market.
In this scenario where the FMR exceeds the market rent, landlords can leverage the Section 8 program to ensure a steady and reliable income stream. The higher FMR provides a buffer that allows landlords to maintain their yields even when rents are lower than the fair market rate. This makes voucher tenants an attractive option for landlords looking to maximize their returns without having to charge exorbitant rents that could push potential tenants away.
Bluefield, VA, has a rental population of 28.5% of its total households, indicating a notable demand for affordable housing. With a median home value of $136,437 and a median income of $52,653, many residents rely on assistance programs like Section 8 to secure housing. Landlords who participate in the Section 8 program can benefit from a guaranteed tenant base and consistent rental payments, which can be crucial in maintaining cash flow and financial stability.
However, it's important to note that while the FMR is higher than the market rent, the cost of managing voucher tenants can still impact overall profitability. Landlords must adhere to Housing Quality Standards (HQS) and undergo regular inspections, which can require additional investment in property maintenance and upgrades. These costs should be factored into the decision to accept Section 8 vouchers, especially given the relatively low median income levels in the area.
In conclusion, the $140 gap between the FMR and the market rent in ZIP 24605 presents an opportunity for landlords to achieve a yield play through the Section 8 program. Despite the administrative and maintenance challenges, the benefits of stable occupancy and predictable income make it a viable strategy for landlords and small-portfolio investors in Bluefield, VA.
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.