Location: Roanoke, VA | Metro: Roanoke, 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 | $1,070 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $243,198 | 0.54% | F |
| 3BR | $1,820 | $387,713 | 0.47% | F |
| 4BR | $2,210 | $555,350 | 0.4% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 24090, located in Fincastle, Virginia, hinges on the balance between yield and stability. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1250, while the average market rent stands at $961. This indicates a relatively low demand for rental properties, suggesting that landlords may have to adjust their rents downward to match the market rate. However, the disparity between the FMR and the market rent points to a potential opportunity for higher yields through government subsidies, particularly for those who can qualify tenants for Section 8 housing vouchers.
The median home value in this area is $330,033, which is a significant investment for any property owner. When considering stability, it's important to look at the percentage of renters and the median household income. In ZIP 24090, only 13.2% of residents are renters, indicating a primarily owner-occupied market. The median household income is $90,521, which suggests a stable economic base but also implies that many residents can afford to buy rather than rent.
Given the data, ZIP 24090 does not align with a high-yield/low-stability flip-style market. Instead, it leans towards a steady-cashflow zone, albeit with a modest yield due to the lower market rent. The low percentage of renters and the lack of information regarding days on market (DOM) suggest a market where rapid turnover and flipping might not be as profitable or feasible. For small-portfolio investors, focusing on long-term rentals and leveraging Section 8 vouchers could provide a reliable source of income, though they should prepare for the possibility of needing to adjust their rents to attract tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.