Location: Roanoke, VA | Metro: Roanoke, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
The economics of Section 8 housing in ZIP code 24438, located in Roanoke County, Virginia, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1060. This figure represents the maximum amount that the housing authority will pay for rent in this specific ZIP code.
A landlord participating in the Section 8 program should understand that the total rent paid by a tenant and the government consists of three parts: the tenant's portion, the government's subsidy, and any utility allowances. The tenant typically pays 30% of their adjusted income towards rent, while the government covers the difference up to the SAFMR limit. Utility allowances are additional payments made to cover electricity, gas, water, and other services, but they do not increase the overall SAFMR ceiling.
To illustrate, if a tenant's adjusted income is $1500 per month, their portion of the rent would be $450 (30% of $1500). Assuming the utility allowance is $200, the total amount the government would subsidize would be $610 ($1060 - $450), bringing the total monthly rent to $860 ($450 tenant portion + $410 government subsidy + $200 utilities).
In ZIP 24438, the local market rent is currently unknown, which makes it difficult to provide a direct comparison. However, the SAFMR of $1060 is specifically tailored to this ZIP code, ensuring that it reflects the local rental market conditions accurately.
Given these numbers, landlords must consider whether the SAFMR rate of $1060 is sufficient for their property management costs, including maintenance, insurance, and mortgage payments. If the market rent exceeds $1060, landlords will face a reimbursement gap, meaning they won't receive enough from the voucher program to cover their expenses. Conversely, if the market rent is below $1060, landlords will have a surplus, receiving more than the market demands for similar properties.
For a two-bedroom apartment in ZIP 24438, the reimbursement gap or surplus can only be determined with accurate local market rent data. Without this information, landlords should prepare for potential financial discrepancies when accepting Section 8 vouchers.
Data Sources: FMR data from HUD (2027).
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.