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 ZIP code 24036 within the Roanoke, VA HUD Metro FMR Area reveals several key points that landlords and small-portfolio investors should consider.
Firstly, regarding whether the rent math works, the Fair Market Rent (FMR) for the area is set at $1040 for fiscal year 2024. This figure represents the maximum amount that a household receiving housing assistance can pay in rent. However, without specific data on the market rent, it's challenging to make a direct comparison. Landlords should ensure their rental prices align closely with the FMR to attract Section 8 tenants.
Secondly, the affordability of property acquisition is uncertain due to the lack of detailed information on the median home value, days on market (DOM), and the percentage of homes that have undergone price reductions. These metrics are crucial for understanding how competitive the market is and whether properties are overpriced or reasonably priced for investment purposes.
Thirdly, assessing tenant demand, the absence of data on the total population and the percentage of renters in the area makes it difficult to gauge the size of the potential tenant pool. Knowing these figures would help determine if there is sufficient demand for rental properties, particularly those that accept Section 8 vouchers.
In conclusion, while the Fair Market Rent for ZIP 24036 is established at $1040 for FY 2024, making it clear what the maximum allowable rent is for Section 8 households, the lack of other critical data points such as market rent, median home values, days on market, price reduction shares, population size, and renter share percentages leaves significant uncertainty. Investors must seek out additional local real estate and demographic data to fully evaluate the viability of investing in this area under the Section 8 program. The available information does not provide a comprehensive picture to confidently recommend or discourage investment based on the criteria outlined.
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.