Section 8 Fair Market Rent (FMR) for ZIP 24006 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 24006, located in Roanoke County, Virginia, can be explained by understanding the relationship between the SAFMR (Small Area Fair Market Rent) and the local market rent. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1040. This figure represents the maximum amount that the federal government will reimburse landlords for participating in the Section 8 Housing Choice Voucher program.

While the local market rent for 2BR apartments in ZIP 24006 is currently unavailable, it's important to note that the SAFMR is designed to reflect the actual rental costs within this precise area, not just the broader county or metropolitan region. This makes the SAFMR a more accurate indicator of what landlords can expect in terms of reimbursement.

A landlord's income under the Section 8 program is determined by the voucher holder's contribution and the government's reimbursement. Typically, the voucher holder pays 30% of their adjusted monthly income towards rent, while the government covers the difference up to the SAFMR limit. In ZIP 24006, if the local market rent exceeds $1040, the landlord will face a reimbursement gap. Conversely, if the local market rent is below $1040, the landlord might see a surplus.

To illustrate, let's assume the local market rent for a 2BR is $1100. If the voucher holder's portion is $300, the government would pay the remaining $740, making the total reimbursement $1040. This leaves a gap of $60 that the landlord must cover, unless they agree to lower the rent to match the SAFMR.

Utility allowances are also part of the equation. The government provides additional funds to help cover utilities, but these amounts are fixed and do not increase the overall reimbursement beyond the SAFMR. Therefore, the utility allowance does not directly affect the reimbursement gap or surplus but can influence the tenant's ability to afford the rent.

In ZIP 24006, the typical reimbursement scenario for a 2BR unit involves a gap where the local market rent exceeds the SAFMR of $1040. Landlords must decide whether to accept this gap or adjust their rental rates to ensure full reimbursement without financial loss.

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.