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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,570 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $244,888 | 0.47% | F |
| 3BR | $1,570 | $325,523 | 0.48% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to buy in ZIP 24128 (Newport, VA) for Section 8 investment hinges on three key questions.
1. Does the FMR of $950 cover the debt service on a $303,731 property?
If the monthly debt service on a $303,731 property is less than $950, then the answer is yes. For example, if you finance the property with a 30-year fixed-rate mortgage at an interest rate of 4%, your monthly payment would be approximately $1,440, which does not clear the FMR. In this case, the answer is no. However, if you can secure a lower interest rate or a down payment that reduces the loan amount, the monthly debt service could fall below $950, making the answer yes.
2. Is the market rent of $661 above, at, or below the FMR?
The market rent is below the FMR. This means that the property is potentially undervalued compared to the rental assistance available through Section 8. If the landlord is willing to accept a market rent that is below the FMR, the answer is yes. If they insist on renting at the FMR, they will likely face competition from other properties and need to offer additional amenities or services to attract tenants.
3. Are 10.1% of residents renters and do they have sufficient demand given N/A-day days on market (DOM)?
The percentage of renters in ZIP 24128 is 10.1%. However, the days on market (DOM) data is not available. If the DOM is low, indicating high demand, the answer is yes. With a high DOM, the answer is no, as there may not be enough demand to fill vacancies promptly. It depends on the DOM data, which is crucial for assessing the rental market's health and speed of tenant acquisition.
In summary, the decision to invest in ZIP 24128 for Section 8 properties is contingent upon the answers to these questions. A yes to all three indicates a viable investment opportunity, while a no to any one suggests reconsideration. The critical factor is the ability to cover debt service with the FMR and the actual market conditions regarding rental demand.
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.