Location: Floyd County, VA | Metro: Floyd County, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 24072 provides a clear picture of the financial landscape for landlords and small-portfolio investors considering this area. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in this region for fiscal year 2026 is set at $1,080, while the market rent based on Census ACS data stands at $1,554. These figures are critical in understanding the potential income streams.
To derive the implied gross-yield, we first consider the FMR scenario. At an annual rent of $1,080, the implied gross-yield for a property valued at $282,678 is approximately 0.4%. This calculation is derived by dividing the annual rent by the median home value. For the market rent scenario, the implied gross-yield increases significantly to about 0.55%, reflecting the higher rental rates.
Given the 8.7% renter density in ZIP 24072, it's important to note that the FMR scenario is less likely to be representative of the overall market dynamics. The FMR is designed to ensure affordable housing and is often lower than what the market can bear. In contrast, the market rent scenario aligns more closely with the actual rental rates reported by the Census Bureau, making it a more realistic benchmark for investment analysis.
The lack of Days on Market (DOM) data suggests that rental listings may move quickly once they become available, indicating a robust demand for rental properties in this area. However, the exact turnover rate remains unclear without DOM figures. Despite this, the higher gross-yield associated with market rents underscores the potential profitability for landlords willing to participate in the local rental market.
In summary, while the Section 8 program offers a steady stream of tenants, the gross-yield is notably lower compared to the broader rental market. For landlords and investors looking to maximize returns, focusing on market rents may offer a better opportunity, even though the competition for rental units could be high due to the dense rental population.
Data Sources: FMR data from HUD (2027). 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.