Section 8 Fair Market Rent (FMR) for ZIP 24016 - 2027

Location: Roanoke, VA | Metro: Roanoke, VA HUD Metro FMR Area

Investment Score for ZIP 24016

B
Monthly Rent (2BR)
$1,380
Median Price (2BR)
$124,449
1% Rule
1.11%
Annual Yield
13.31%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,120
1 Bedroom$1,180
2 Bedrooms$1,380
3 Bedrooms$1,910
4 Bedrooms$2,310
5 Bedrooms$2,680
6 Bedrooms$3,002
7 Bedrooms$3,242
8 Bedrooms$3,404

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,380 $124,449 1.11% B
3BR $1,910 $154,659 1.23% A
4BR $2,310 $211,241 1.09% B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
10,521
Median Household Income
$46,512
Housing Units
5,696
Renter Percentage
78.7%
Occupancy Rate
87.7%
Renter Occupied
3,930

The ZIP code 24016 in Roanoke, VA, is predominantly a renter-heavy area, with 78.7% of the population renting their homes. This high percentage of renters indicates a strong demand for rental properties, particularly those that accept Section 8 vouchers. The median household income in this area is $46,512, which provides a baseline for understanding the financial situation of potential tenants.

The market rent for this ZIP code is $1,033 per month, slightly below the Fair Market Rent (FMR) of $1,090 for FY 2024. This suggests that landlords who set their rents at the market rate will be competitive and potentially attract a larger number of Section 8 tenants. The discrepancy between the market rent and the FMR also implies that there is room for negotiation and adjustment in rental pricing to align with government standards.

To contextualize the affordability of housing for local residents, the typical market rent consumes approximately 22.2% of the median household income ($1,033 / $46,512 * 100). This figure is within a reasonable range for most tenants, though it still represents a significant portion of their income dedicated to housing costs. Landlords should note that the FMR, which is the maximum amount a voucher can cover, is only slightly higher than the market rent, indicating that the majority of Section 8 tenants will be able to afford units at or near the market rate.

In terms of tenant profiles, landlords in 24016 should expect a mix of families and individuals who rely on Section 8 vouchers to subsidize their housing expenses. These tenants will likely have lower incomes, given the median household income of the area, and will benefit from the stability that affordable housing provides. It's important for landlords to understand that while the income levels may be modest, the presence of a large renter base and a robust voucher system means that finding qualified tenants is feasible. However, landlords must also be prepared to adhere to the requirements and regulations associated with accepting Section 8 vouchers.

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.