Fiber Impact Series
Fiber Raises Home Values. That Raises Your Tax Base.
Homes with fiber access sell for more. Assessed values rise. Property tax revenue grows — without raising rates. Here’s what the research shows and what it means for your community’s fiscal health.
3.1%
average home value premium for properties with fiber access, based on national data from over 1 million sales.[1]
4.9%
home value penalty for properties lacking access to adequate broadband in a fiber-connected market.[1]
$4M+
in annual aggregate housing value added in Charlottesville, VA attributable to fiber access from 2015-2023.[2]
The Math
How a 3.1% premium compounds across a community
A 3.1% home value premium sounds modest until you apply it at scale. Here’s what it means for a community of 5,000 homes with a median home value of $175,000 — typical for many Great Lakes region communities.
Community baseline
5,000 residential properties at a median value of $175,000 = $875M total assessed residential value.
$875M
baseline
Fiber premium applied
A 3.1% increase across the full housing stock adds $27.1M in assessed value to the community's tax roll.
+$27.1M
added assessed value
Annual tax revenue impact
At a 1% effective property tax rate (near the U.S. average), that $27.1M generates $271,000 in additional annual property tax revenue — without any rate increase.
$271K/yr
new tax revenue
Note on methodology: This model applies the documented 3.1% fiber premium uniformly to a hypothetical community baseline. Real-world results vary based on local property tax rates, existing broadband availability, market conditions, and how broadly fiber is deployed across the housing stock. The Charlottesville data (documented in footnote 2) reflects a real community outcome over an eight-year period.
Two Perspectives
What homebuyers and tax authorities both see
The home value effect of fiber isn’t just a buyer preference — it’s reflected in actual sales prices, appraiser assessments, and the tax rolls that fund municipal services.
The homebuyer's perspective
A 2015 study analyzing over 1 million home sales found that fiber availability increased sale prices by an average of 3.1%. The same study found that homes without adequate broadband access in otherwise-connected markets sold for 4.9% less than comparable properties.[1]
The effect compounds over time. Buyers increasingly treat broadband as a utility — on the same level as running water or electricity. A home without fiber isn't just inconvenient; it's a material quality-of-life gap that buyers price into their offers.
Post-pandemic survey data reinforces this. In a 2021 National Association of Realtors survey, 80% of buyers said high-speed internet was "very important" or "essential" when evaluating a home.[3]
Why buyers pay more for fiber
Remote work: reliable home office connectivity is non-negotiable for hybrid and remote workers.
Streaming and entertainment: 4K content, gaming, and simultaneous household use require bandwidth DSL can't provide.
Smart home systems: security cameras, thermostats, and connected appliances all run on home broadband.
Future-proofing: buyers assume fiber will remain capable as digital demands grow; other technologies may not.
The tax authority's perspective
Assessed property values are the foundation of municipal finance. School districts, roads, public safety, and parks are funded by property tax revenue, which is calculated as a rate applied to assessed valuations. When valuations rise, revenue rises — without any increase in the millage rate.
In Charlottesville, the FBA study documented a $4 million annual increase in aggregate housing value attributable to fiber access. Over the eight-year study period (2015—2023), that represents more than $35 million in added housing value on the tax roll.[2]
Communities that invest in fiber infrastructure are investing in the tax base that funds everything else. The return shows up in assessments, not just in economic development brochures.
How value translates to revenue
Sale prices rise: higher transaction prices lead to higher assessed valuations at reassessment.
Assessment ratios stay stable: assessors apply the same methodology; the underlying value simply increases.
Tax revenue grows: same millage rate on higher valuations generates more revenue for schools and services.
No rate increase required: the infrastructure investment pays back through organic value growth.
Case Study
Charlottesville, VA: eight years of documented fiscal impact
The FBA’s 2025 white paper on Charlottesville is among the most specific pieces of community-level evidence on fiber’s fiscal impact. Here’s what they found.
Housing value trajectory
2015—2023
Charlottesville's fiber buildout (launched 2014) produced an average annual increase in aggregate housing value of approximately $4 million. Over the 8-year study period, the cumulative effect added over $35 million to the city's residential property tax roll.
The FBA analysis credited fiber with a significant portion of this growth, distinct from regional housing market trends, by comparing Charlottesville's trajectory against peer Virginia cities that lacked comparable fiber deployments during the same period. The control group methodology strengthens the attribution.
Broader economic context
Job creation + housing together
The housing value effect in Charlottesville didn't occur in isolation. The same period saw fiber-attributable job growth of approximately 735 positions and higher-than-average small business formation. These forces are mutually reinforcing: more jobs attract more buyers, more buyers bid up values, higher values fund better public services that attract more investment.
The Charlottesville case illustrates why fiber's fiscal return is greater than any single metric captures. The housing value premium is a downstream effect of the same economic activity that fiber enables at the employment and business level.
Community Impact
What fiber means for your city’s
bottom line
Property tax revenue is the foundation of municipal and county budgets. Fiber’s impact on home values isn’t just a real estate story — it’s a fiscal one. Here’s what that means in practice.
Fund schools without new levies
Most school funding comes from property tax revenue. When home values rise due to fiber access, school districts collect more revenue without asking voters for a millage increase. That's funding for teachers, facilities, and programs that didn't require a ballot measure.
Attract new residents and buyers
Homes sell faster and for more when fiber is available. That means fewer days on market, stronger comps, and a housing stock that attracts buyers from larger metros looking for more space. Each new household adds to the local tax base, consumer spending, and community vitality.
Protect against value decline
The 4.9% value penalty documented for homes without broadband access is a warning. As markets come to expect fiber, communities without it don't just miss the upside — they face downward pressure on existing home values. Fiber is protection against a broadening infrastructure gap.
Strengthen commercial tax base too
The fiscal effect isn't limited to residential. Commercial and industrial properties with fiber access see the same market signal: fiber-ready space commands premium leases and attracts better tenants. Higher commercial valuations mean more property tax from the non-homestead portion of the assessment roll.
"Broadband infrastructure plays a critical role in economic development, and Surf’s investment in Grant County supports our efforts to connect residents, students, and businesses across the region. We appreciate their commitment to being part of this community for the long haul."
Chuck Binkerd
Executive Director, Economic Growth Council,
Grant County, IN
"Surf has been a consistent presence in our broadband efforts. Their boots-on-the-ground approach, community involvement, and investment in rural Whitley County make them a natural partner in closing our digital divide."
Theresa Baysinger
Commissioner,
Whitley County, IN
"For communities our size, infrastructure like this makes all the difference. Fiber internet keeps us competitive with larger cities, while making sure our residents and businesses don’t have to leave town to find the opportunities they deserve."
Chuck Steele
Mayor,
Momence, IL
"We are excited to welcome Surf Internet to the Sparta community. Having additional reliable, high-speed internet options is a great benefit for both our residents and our businesses. We are pleased to have Surf Internet as a valued member of our business community and wish them much success here in Sparta."
Jim Lower
Village Manager,
Sparta, MI
"Expanding reliable and affordable access to the internet is essential to the citizens of Porter County. Through expansion of their infrastructure and enhancements to their network, Surf has been heavily investing in Porter County."
Jesse Butz
Director, Porter County Public Library System,
Portage, IN
"On behalf of the City of Howell, I’m very happy to welcome Surf Internet to our community. They will expand high-speed fiber internet throughout the county, enhancing our quality of life and helping in our efforts to attract new residents and businesses to the area."
Bob Ellis
Mayor,
Howell, MI
The Fiber Impact Series
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