Location: Roanoke, VA | Metro: Roanoke, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
The analysis of the Section 8 cap-rate picture for ZIP code 24030 in Virginia reveals some critical insights. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1040 per month. However, the median home value and the market rent for the area are currently unavailable, making it challenging to provide a comprehensive assessment.
To derive the rough cap-rate picture, we must first annualize the two-bedroom FMR. At $1040 per month, the annualized FMR is $12,480. This figure represents the potential annual rental income for a property under the Section 8 program.
Given that the median home value is not available, we cannot directly calculate the gross yield. Nevertheless, we can infer that the gross yield would be significantly lower than what might be expected from market rents due to the fixed nature of Section 8 payments. The gross yield is calculated as the annual rental income divided by the property value. Without a specific property value, we cannot provide an exact percentage, but it is safe to say that the yield would be less attractive compared to market rates.
In the absence of market rent data, we cannot provide a direct comparison between the Section 8 gross yield and the potential gross yield from market rents. However, historically, Section 8 yields are often lower due to the capped payment structure and the necessity of maintaining properties to meet housing quality standards.
The lack of information regarding the renter density and the days on market (DOM) further complicates the analysis. Typically, higher renter density and shorter DOM indicate a more favorable market for rentals. Given the incomplete data, it is difficult to determine the likelihood of finding tenants quickly or the proportion of renters in the area.
Despite these limitations, it is evident that the Section 8 program in ZIP 24030 offers a stable, though potentially lower, gross yield compared to market rents. For landlords and small-portfolio investors, this stability can be a significant advantage, especially in uncertain economic times.
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.