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 | $1,230 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,300 | $165,886 | 0.78% | D |
| 2BR | $1,520 | $213,803 | 0.71% | D |
| 3BR | $2,100 | $298,162 | 0.7% | D |
| 4BR | $2,540 | $409,699 | 0.62% | D |
| 5BR | $2,946 | $563,249 | 0.52% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 24153, which falls under the Salem, VA, Roanoke, VA HUD Metro Fair Market Rent (FMR) area, does not favor landlords. The HUD FMR for the fiscal year 2024 is set at $1,190, whereas the market rent, as measured by Zillow's Observed Rental Index (ZORI), stands at $1,531. This means that tenants receiving housing assistance through Section 8 may struggle to afford market-rate rents, creating a potential mismatch between available subsidies and actual rental costs.
Acquisition in this area remains affordable for investors. The median home value is $305,113, indicating a reasonable entry point into the real estate market. Additionally, the 17-day days on market (DOM) suggests a relatively quick turnaround for property sales, and the low 0.2% price-cut share indicates that homes are selling close to their asking prices, further supporting the notion that acquisitions can be made at favorable terms.
Tenant demand in ZIP 24153 is substantial. With a total population of 38,914, and 28.7% of residents being renters, there is a significant pool of potential tenants. However, the demand for Section 8 vouchers may be less robust given the discrepancy between the FMR and market rents.
In conclusion, while the acquisition cost and turnover rates are favorable for investors, the disparity between the HUD FMR and market rents poses a challenge for landlords seeking to participate in the Section 8 program. Despite strong overall tenant demand, the financial viability of renting to Section 8 tenants is questionable due to the higher market rates. Investors should consider these factors carefully before entering this market segment.
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.