Location: Tazewell County, VA | Metro: Russell 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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $93,374 | 1.04% | B |
| 3BR | $1,200 | $169,215 | 0.71% | D |
| 4BR | $1,340 | $221,910 | 0.6% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 24609, which encompasses Cedar Bluff, Virginia, stands at $53,958. Considering the market rate for rent is $857 according to the Census ACS, it becomes evident that the financial landscape poses challenges for local renters. To put this into perspective, the median income suggests that many households might find it difficult to meet the market rate without significant strain on their budget.
When comparing the market rate to the Fair Market Rent (FMR) set at $930 for the fiscal year 2026, it's clear that the FMR slightly exceeds the current market rate. This means that while voucher holders have a higher potential to cover rent costs, the overall rental environment is still relatively tight for both voucher recipients and those paying out-of-pocket.
With only 18.8% of the 6,923 residents being renters, the competition among landlords is likely to be fierce. The limited number of renters means that landlords must carefully consider their pricing and tenant selection strategies to remain competitive. The affordability gap between the median income and the rental rates highlights the importance of understanding the financial capabilities of potential tenants.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the analysis points towards a strategic decision. Accepting vouchers can secure a steady stream of income, albeit at a slightly higher rate than the current market average, but it also means adhering to government regulations and potentially dealing with slower payment cycles. On the other hand, targeting cash-paying tenants requires maintaining competitive rates and ensuring the property meets the expectations of a discerning market where financial stability is a premium concern.
Takeaway: In ZIP 24609, landlords should weigh the benefits of accepting vouchers against the desire to attract financially stable cash-paying tenants. Given the median income and current market rates, vouchers offer a viable option to bridge the affordability gap, ensuring occupancy even when rent prices are near the FMR threshold. However, landlords should also prepare to adjust their rates to match the financial realities of the area, balancing regulatory compliance with market competitiveness.
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.