Location: Carroll County-Galax city, VA | Metro: Floyd County, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 24352 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by HUD for fiscal year 2026, stands at $910. In contrast, the Census ACS data indicates that the current market rent is $481. This results in a gap of $429, or approximately 47%, between what landlords can charge through the Section 8 program and the prevailing market rate.
Given that the FMR exceeds the market rent, properties in ZIP 24352 present an attractive opportunity for landlords and small-portfolio investors looking to maximize their rental yields. By accepting Section 8 tenants, landlords can effectively increase their rental income by nearly 90%, from $481 to $910 per month, without having to raise rents above the local market rate. This is particularly compelling given that only 30.9% of residents are renters, suggesting a lower competition for rental properties compared to areas with higher percentages of renters.
The median home value in 24352 is $217,502, which is a key metric for understanding the overall housing market in the area. With a median income of $50,321, many residents may find it challenging to afford market-rate rents or homeownership costs, thereby increasing the demand for subsidized housing options such as Section 8. For landlords, this means that voucher tenants can help fill vacancies and provide a steady, government-backed income stream, mitigating the risks associated with open-market tenants who might struggle to pay rent consistently.
In summary, the disparity between the FMR and the actual market rent in ZIP 24352 presents a clear yield play for landlords and small-portfolio investors. It allows them to capitalize on government subsidies while renting out their properties at a rate that is still affordable for many local residents. This makes the area a favorable location for those interested in stable, long-term rental investments.
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.