Section 8 Fair Market Rent (FMR) for ZIP 24060 - 2027

Investment Score for ZIP 24060

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	$1,140
1 Bedroom	$1,150
2 Bedrooms	$1,470
3 Bedrooms	$1,960
4 Bedrooms	$2,250
5 Bedrooms	$2,610
6 Bedrooms	$2,923
7 Bedrooms	$3,157
8 Bedrooms	$3,315

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
1BR	$1,150	$197,428	0.58%	F
2BR	$1,470	$270,413	0.54%	F
3BR	$1,960	$399,027	0.49%	F
4BR	$2,250	$517,135	0.44%	F
5BR	$2,610	$683,544	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 24060 (Blacksburg, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 24060, as set by HUD for 2026, is $1390 for a two-bedroom unit. This figure represents 24.6% of the median household income of $67,675 in Blacksburg. However, the actual rental market in Blacksburg is significantly higher. The Zillow median price for a two-bedroom home is $272,572, which translates to a monthly rent that would be much higher than the FMR. Given the price-to-FMR ratio of 16.3x, it is clear that the actual rents in the area far exceed the FMR. For example, if we assume a conservative annual rental yield of 5%, the monthly rent for a property priced at $272,572 would be approximately $1,135. However, this is still below the actual market rent, which is likely much higher given the price-to-FMR ratio. This creates significant constraints for Section 8 voucher holders. They can only afford units that are priced at or below the FMR, which means they are limited to finding properties that cost $1390 per month or less for a two-bedroom unit. Given the high actual rental prices, this makes it challenging for voucher holders to find suitable housing in Blacksburg. #### Affordability & Renter Profile Blacksburg has a population of 48,541, with 56.6% of residents being renters. This indicates a strong rental market, but it also suggests that many residents may struggle with affordability. With a median household income of $67,675, the average renter would need to spend about 24.6% of their income on a two-bedroom unit at FMR. However, the occupancy rate of 83.3% implies that there is a reasonable balance between supply and demand, but it does not necessarily mean that the market is affordable for all renters. Given the high price-to-FMR ratio, the market is tight for those relying on Section 8 vouchers. The actual rental prices are well above the FMR, making it difficult for low-income households to find affordable housing. Additionally, the high prices suggest that the typical renter in Blacksburg is likely to have a higher income level, possibly due to the presence of Virginia Tech University and other local employers that offer competitive wages. #### Investor Angle From an investor perspective, the ZIP code 24060 is not particularly cash-flow positive when considering the FMR. The FMR for a two-bedroom unit is $1390, while the actual market rent is expected to be much higher, given the price-to-FMR ratio of 16.3x. Assuming a conservative annual rental yield of 5%, the monthly rent for a property priced at $272,572 would be around $1,135, which is still below the FMR. This implies that investors who rely solely on FMR may struggle to cover their mortgage payments, maintenance costs, and other expenses. In terms of investment grade, the ZIP code 24060 appears to be risky for Section 8-focused investors. The high price-to-FMR ratio indicates that the rental market is not aligned with the FMR, making it difficult to attract tenants using Section 8 vouchers. Furthermore, the limited supply of affordable units means that there is a high risk of vacancy, especially if the property is priced at the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that are priced at or below the FMR. For instance, a one-bedroom unit priced at $1090 or a three-bedroom unit priced at $1870 might be more attractive to voucher holders. This approach could help mitigate the risk of vacancy and ensure steady cash flow. 2. **Consider Alternative Rental Markets**: Given the high price-to-FMR ratio, investors might want to consider alternative rental markets where the actual rents are closer to the FMR. This could include areas outside of Blacksburg where the rental market is less competitive and more aligned with the FMR. 3. **Evaluate Property Value**: Before investing, evaluate the property value carefully. A two-bedroom unit priced at $272,572 would likely command a market rent of over $1,135, which is significantly higher than the FMR. Therefore, investors should assess whether the property’s value justifies the higher rent and whether it can attract non-voucher tenants. #### Bottom Line Based on the provided data, the ZIP code 24060 is not recommended for Section 8-focused investors. The high price-to-FMR ratio and limited supply of affordable units make it challenging to achieve positive cash flow. Instead, investors should consider either focusing on lower-rent units or exploring alternative markets where the rental prices are more closely aligned with the FMR. In summary, the recommendation for Section 8-focused investors is to **skip** ZIP code 24060 and look for opportunities in areas with a better alignment between actual rents and the FMR.

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.