Location: Roanoke, VA | Metro: Blacksburg-Christiansburg-Radford, VA HUD Metro FMR Area
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 | $960 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $195,982 | 0.63% | D |
| 3BR | $1,650 | $265,820 | 0.62% | D |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 24087 in Elliston, VA, reveals several potential challenges that could impact the success of a Section 8 property. First, tenant turnover is likely to be higher due to the difference between the market rent of $1,115 and the Fair Market Rent (FMR) of $980 for FY 2024. This discrepancy can lead to difficulties in attracting tenants who qualify for Section 8 vouchers, as the rental amount they can afford is lower than the market rate.
Second, vacancy exposure is a concern given the lack of data on the average number of days on market (DOM). Without this information, it's difficult to predict how long a unit might remain vacant, which can significantly affect cash flow and profitability.
Third, there is a risk of deferred maintenance exposure. With a typical home value of $244,836 and a median income of $41,204, homeowners may struggle to keep up with maintenance costs, potentially leading to substandard living conditions. This could pose a challenge for landlords, as they must ensure their properties meet the necessary standards set by the program.
However, these risks must be weighed against the high renter share in the area, which stands at 30.8%. High renter density generally translates into greater demand for rental housing, including units that accept Section 8 vouchers. This suggests that despite the challenges, there is a strong likelihood of finding qualified tenants willing to use their vouchers to secure housing.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.