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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $75,452 | 1.31% | A |
| 3BR | $1,210 | $134,250 | 0.9% | C |
| 4BR | $1,330 | $203,869 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 24641 (Richlands, VA) provides insight into potential investment returns based on Fair Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR for FY 2026 is $960, while the Census ACS reports a market rent of $804. These figures can be compared against the median home value of $116,769 to determine the gross yield.
Using the FMR of $960, the annual rental income would be $11,520. This results in a gross yield of approximately 9.9% when calculated against the median home value. On the other hand, applying the market rent of $804, the annual rental income drops to $9,648, leading to a gross yield of around 8.3%.
The implied gross-yield for the FMR scenario is 9.9%, and for the market rent scenario, it is 8.3%. Given that Richlands has a renter density of 36.3%, the FMR scenario appears more optimistic. However, the lack of data on days on market (DOM) makes it difficult to assess the likelihood of maintaining higher rents consistently. Landlords and small-portfolio investors should consider the FMR as a benchmark for maximum allowable rents under the program, whereas the market rent reflects current conditions.
The lower gross-yield from the market rent scenario is more reflective of the actual rental environment in Richlands. While the FMR scenario offers a higher potential return, it is important to recognize that the market dynamics, particularly the renter density, suggest that achieving such high rents may be challenging without significant competition or vacancy issues. Therefore, investors should lean towards the market rent figure of $804 per month for a more realistic assessment of potential returns in ZIP 24641.
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.