Location: Tazewell County, VA | Metro: Tazewell County, VA
| 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 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 24606 reveals a challenging investment scenario due to limited data. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $1,020 per month, annualizing to $12,240. This figure represents the maximum amount that a landlord can charge for Section 8 rental assistance.
Given the median home value is not available, it's difficult to provide a precise cap rate. However, we can infer the gross yield based on the FMR. Assuming a property value of $200,000, the gross yield would be approximately 6.12%. This calculation is based on the annualized rent ($12,240) divided by the property value ($200,000).
For comparison, if we had a market rent figure, we could perform a similar calculation. Without the market rent data, it's impossible to determine the exact gross yield. However, it's important to note that the absence of market rent data suggests a lack of conventional rental activity in this area, making the Section 8 rent the only reliable figure for analysis.
The 0.0% renter density indicates a very low population of renters, which is likely to impact the demand for rental properties. This statistic implies that there are few potential tenants outside of the Section 8 program, reducing the attractiveness of the area for traditional rental investments.
The Days on Market (DOM) figure being N/A further complicates the analysis. Typically, a high DOM would indicate difficulty in renting out properties, but without this data, we cannot assess how quickly properties might be leased. This uncertainty adds risk to any investment decision in this ZIP code.
In conclusion, the gross yield derived from the Section 8 FMR provides a clear benchmark for potential returns. While the exact cap rate cannot be determined without additional data, the 6.12% gross yield based on the FMR is a concrete starting point for investors considering properties in ZIP 24606. Given the low renter density and lack of market rent data, the Section 8 rent scenario is more realistic for investment planning in this area.
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.