Location: Roanoke, 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 | $1,180 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $147,116 | 0.99% | C |
| 3BR | $2,020 | $191,572 | 1.05% | B |
| 4BR | $2,440 | $207,353 | 1.18% | B |
| 5BR | $2,830 | $220,350 | 1.28% | A |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 24017 (Roanoke, VA) might have several concerns regarding the feasibility of participating in the Section 8 program. Let's address these points directly.
Objection 1: Will FMR $1070 (zip FY 2024) cover the mortgage on a $184,787 home?
The Fair Market Rent (FMR) for ZIP 24017 in fiscal year 2024 is set at $1070. This amount needs to be evaluated against the cost of owning a home valued at $184,787. According to recent mortgage calculators, assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on such a property would be approximately $975. The FMR of $1070 does indeed cover the mortgage, leaving a buffer of $95 per month, which can be used towards property taxes, insurance, and maintenance costs. However, it's important to note that this calculation assumes a 20% down payment and does not account for any additional fees or fluctuations in interest rates.
Objection 2: Is there enough renter demand at 45.0%?
The percentage of renters in ZIP 24017 is 45.0%. While this figure indicates a significant portion of the population is renting, it does not specify the number interested in subsidized housing. To truly gauge demand, one must consider the broader economic context and local policies supporting affordable housing. Current data suggests that Roanoke has a growing need for affordable housing options, but the specific demand for Section 8 tenants isn't quantified here. Landlords should consult local housing authorities for more detailed insights into tenant availability.
Objection 3: Will vouchers keep pace with $1,305 market rents?
The FMR of $1070 is notably lower than the current market rent of $1,305. This discrepancy raises questions about whether the voucher system will adequately compensate for the higher market rates. Historically, the Department of Housing and Urban Development (HUD) adjusts FMRs annually based on housing market conditions. If market rents continue to rise, HUD may increase the FMR to match. However, it's also worth noting that landlords often negotiate the difference between the voucher amount and the actual rent with tenants. This means landlords could potentially receive the full $1,305 if they structure their leases appropriately.
In summary, while the FMR covers the mortgage with a slight margin, the exact demand for Section 8 tenants remains unclear. Additionally, landlords must prepare for the possibility of receiving less than market rent due to the current FMR. These considerations are crucial for any landlord or small-portfolio investor entering the Section 8 program in ZIP 24017.
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.