Location: Roanoke, VA | Metro: Lynchburg, VA MSA
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 | $1,220 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $219,794 | 0.67% | D |
| 3BR | $2,050 | $330,632 | 0.62% | D |
| 4BR | $2,410 | $410,911 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate scenario for ZIP 24064 (Blue Ridge, VA) can be analyzed using the Fair Market Rent (FMR) and market rent figures. With an annualized 2BR FMR of $990 per month (for FY 2024), the annual income would be $11,880. Given the median home value of $310,448, this translates to an implied gross yield of approximately 3.8%. This calculation is based on the formula for gross yield: (Annual Income / Property Value) * 100.
On the other hand, using the market rent figure of $1,179 per month (from Census ACS), the annual income increases to $14,148. The implied gross yield for this scenario is approximately 4.5%. This higher yield reflects the potential for greater rental income under market conditions.
To determine which scenario is more realistic, consider the local renter density and the days on market (DOM) data. ZIP 24064 has a renter density of 10.1%, indicating a relatively low proportion of renters in the area. The N/A-day DOM suggests that there may be limited data available on how quickly properties are rented out, potentially implying slower turnover rates or challenges in securing tenants.
Given these factors, the 3.8% gross yield derived from the FMR appears more realistic. While the market rent scenario yields a higher 4.5%, the lower renter density and lack of clear DOM data suggest that landlords might face difficulties in consistently achieving market rents. Therefore, relying on the FMR provides a more conservative and likely accurate representation of rental income potential in this ZIP code.
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.