Location: Franklin County, VA | Metro: Roanoke, VA HUD Metro FMR Area
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 | $1,090 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $197,830 | 0.68% | D |
| 3BR | $1,860 | $280,307 | 0.66% | D |
| 4BR | $2,260 | $543,108 | 0.42% | F |
| 5BR | $2,622 | $836,788 | 0.31% | F |
U.S. Census Bureau data (2024)
Renting properties in ZIP code 24014, located in Roanoke, VA, and part of the Franklin County, VA HUD Metro FMR Area, can be strategically positioned as an appreciation play within a Section 8 portfolio. This classification is based on the current market dynamics and rental pricing trends.
The Fair Market Rent (FMR) for ZIP 24014 in fiscal year 2024 is set at $1000. However, the market rent currently averages at $1,280, indicating a healthy premium over the FMR. This means that landlords participating in the Section 8 program can still maintain positive cash flow while receiving a subsidy that covers the FMR. The spread between the FMR and market rent is $280, which is significant enough to cover operational costs and provide a margin for profit.
The median home value in ZIP 24014 stands at $288,094, reflecting a stable housing market. With a price-cut share of only 0.3%, it suggests that property values are unlikely to experience significant depreciation, thus offering a secure investment. Additionally, the Days on Market (DOM) average of 43 days indicates a brisk pace for property transactions, suggesting strong demand and a healthy real estate market.
A key factor supporting the appreciation play strategy is the low price-cut share and relatively short DOM. These metrics indicate that properties in this area hold their value well and sell quickly, which is beneficial for investors looking to capitalize on appreciation over time. While the median income of $70,381 and a renter share of 29.0% might suggest some risk, they also imply a steady demand for affordable housing, which aligns well with the Section 8 program's mission.
In conclusion, ZIP 24014 presents itself as an appreciation play within a Section 8 portfolio due to its stable property values, quick sales, and a healthy premium over the FMR. Landlords can expect consistent cash flow and the potential for long-term capital gains without the need for frequent price adjustments or extended marketing periods.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.