Section 8 Fair Market Rent (FMR) for ZIP 24004 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 24004, located in Roanoke County, Virginia, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1040 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental rates unique to this area.

Local market rents for a two-bedroom unit in ZIP 24004 are currently unavailable, making it difficult to compare the SAFMR directly against the market. However, the SAFMR provides a benchmark for landlords participating in the program.

A Section 8 voucher payment consists of two parts: the tenant's contribution and the government subsidy. The tenant must pay 30% of their adjusted income towards rent, plus any applicable utility allowances. The government then covers the difference between the tenant's payment and the SAFMR, up to $1040 in this case.

To illustrate, if a tenant's adjusted income is $2000 per month, they would contribute 30% of that amount toward rent. In this example, the tenant would pay $600 ($2000 x 0.30) toward rent. If there are additional utility allowances, say $100, the total contribution from the tenant would be $700. Therefore, the government would subsidize the remaining $340 ($1040 - $700) to ensure the landlord receives the full SAFMR amount.

This reimbursement structure can result in a significant portion of the rent being covered by the government subsidy, particularly when the tenant's income is low. However, it also means that landlords will not receive more than the SAFMR, even if the market rent is higher. For instance, if the market rent for a two-bedroom apartment in ZIP 24004 were $1200, the landlord would still only receive $1040 under the Section 8 program, creating a $160 shortfall compared to the market rate.

In summary, landlords in ZIP 24004 can expect a steady, government-backed income of up to $1040 per month for a two-bedroom apartment, but this comes with the risk of not reaching the local market rent, leading to a potential reimbursement gap. Conversely, if the market rent is lower than $1040, landlords might see a surplus in their monthly income.

Data Sources: FMR data from HUD (2027).

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.