Are properties located next to gas stations eligible for insurance?

Stationary storage tanks containing flammable or explosive material pose potential hazards to housing, including hazards from fire and explosions.

If the subject property line is within 300 feet of an above ground or subsurface stationary storage tank with the capacity of 1,000 gallons or more of flammable or explosive material, then the property is ineligible for FHA insurance. The Appraiser must notify the Mortgagee of the deficiency of Minimum Property Requirements (MPR) or Minimum Property Standards (MPS), so the Mortgagee can determine the eligibility. 

This includes domestic and commercial uses as well as automotive service station tanks. 
For additional information see Handbook 4000.1 II.D.3.c.iii.(C)(7) at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-05032