Section 8 Fair Market Rent (FMR) for ZIP 24105 - 2027

Location: Carroll County-Galax city, VA | Metro: Floyd County, VA HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$760
2 Bedrooms	$990
3 Bedrooms	$1,190
4 Bedrooms	$1,350
5 Bedrooms	$1,566
6 Bedrooms	$1,754
7 Bedrooms	$1,894
8 Bedrooms	$1,989

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

426

Median Household Income

$90,114

Housing Units

235

Renter Percentage

N/A

Occupancy Rate

84.7%

Renter Occupied

To determine if you should buy in ZIP code 24105 for Section 8 investments, follow this decision tree:

Step 1: Evaluate if the Fair Market Rent (FMR) of $950 can cover the debt service on a property priced at $218,880.

If the monthly debt service (including mortgage payments, taxes, insurance, and maintenance) exceeds $950, then the answer is No. The FMR does not provide sufficient income to meet financial obligations.

If the monthly debt service is less than or equal to $950, proceed to the next step.

Step 2: Assess how the local market rent compares to the FMR of $950.

If the market rent is above $950, you have a potential opportunity to charge more than the FMR, which could be beneficial if you're considering non-Section 8 tenants. However, for strict Section 8 investments, the FMR is the cap. So, the answer remains No.
If the market rent is at or near $950, you can expect that your rental income will align closely with the FMR. This scenario is ideal for Section 8 properties, leading to a Yes for those strictly looking to invest in Section 8 housing.
If the market rent is below $950, the local rental market is underserved relative to the FMR, which could mean a higher demand for affordable housing. This makes a Yes investment decision more favorable, as long as the FMR covers your debt service.

Step 3: Determine if there's enough demand for Section 8 rentals based on the percentage of renters and the days on market (DOM).

If the percentage of renters is 0.0% and the DOM is N/A, this indicates a lack of available data and suggests further investigation is required. In such cases, the decision is It Depends. You must look into additional sources to understand the demand for rentals in this area.

In summary, the key factors are the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the availability of data on rental demand. Without concrete data on market rents and demand, the decision to invest in ZIP 24105 for Section 8 purposes is contingent upon further research.

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.