Location: Floyd County, 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 | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,540 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,540 | $308,295 | 0.5% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 24138 is poised for stability and potential growth over the next 12-24 months, anchored by the median home value of $262,783. This figure suggests that homeowners have established equity, which supports the overall health of the housing market. However, the lack of data on the percentage of listings that have been reduced and the median days on market (DOM) indicates a balanced market where neither buyers nor sellers hold significant leverage.
On the rental side, the Federal Market Rent (FMR) for ZIP 24138 in fiscal year 2024 is set at $1,190, while the current market rate, according to Census ACS data, is $888. This discrepancy signals an opportunity for landlords and small-portfolio investors to potentially increase rents to align more closely with the FMR without risking tenant loss, given the current lower market rates. The upward pressure on rental prices can be a positive indicator for those looking to maximize cash flow.
For long-term investors, the appreciation thesis is grounded in the fundamentals of the area. With a median home value that has remained steady, any future appreciation will likely be driven by broader economic factors, such as job growth, population increases, or improvements in infrastructure. Investors should focus on properties that offer intrinsic value and are situated in desirable locations within ZIP 24138 to capitalize on these trends.
The current setup, as implied by the data, suggests a market where property values are unlikely to experience dramatic fluctuations. Instead, the focus should be on maintaining stable occupancy and gradually increasing rental income to reflect the FMR. This approach ensures a solid return on investment without the risk associated with speculative appreciation.
Investors in ZIP 24138 should also consider the potential for converting rental properties into owner-occupied homes if market conditions shift favorably towards home sales. The median home value provides a benchmark for assessing the profitability of such transitions. Given the current market dynamics, a conservative strategy focusing on steady rental income and gradual property value appreciation is advisable.
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.