I just double checked one of my local Web Forms applications locally running in Visual Studio 2013 Ultimate on Windows 8.1. The settings are still there. If you open the project properties for your Web Forms project, you should see the following:

After selecting Local IIS, setting a port, and saving, you should be walked through the process of configuring a Virtual Directory for your site (if one isn't already configured).
EDIT
After looking at your edit, it looks like you've created a Web Site Project rather than a Web Application Project. You can read about the various differences here:
Web Application Projects versus Web Site Projects in Visual Studio
If you haven't written any significant code yet, I'd suggest deleting the Web Site Project and creating a new Web Application Project. You'll then see the settings as described above.
If you really want to keep the Web Site Project, you'll have to configure the site in IIS and then open it in Visual Studio using the 'Open Web Site...' dialog (and then choosing Local IIS as the source):
