Location: Essex County, VA | Metro: King and Queen County, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 23023 in Section 8 housing reveals several potential issues that could impact landlords and small-portfolio investors. Tenant turnover is a significant concern when considering the market rent versus the $1090 Fair Market Rent (FMR) set for fiscal year 2024. The difference between market rent and FMR can lead to frequent changes in occupancy, which may disrupt property management and increase costs associated with turnovers.
Vacancy exposure is another critical factor, especially given the unknown number of days on market (DOM). This uncertainty makes it difficult to predict how long a unit might remain vacant, potentially leading to lost rental income. Furthermore, the lack of specific data regarding the typical home value and median income in the area introduces an element of deferred maintenance risk. Without knowing these figures, it's challenging to assess whether residents have the financial capacity to maintain their homes adequately, which could result in higher repair costs and lower property values over time.
Despite these risks, the 37.1% renter share in ZIP 23023 indicates a robust demand for rental properties, including those participating in the Section 8 program. High renter density often translates into a larger pool of tenants who rely on housing vouchers, which can provide a steady stream of rental income. This demand helps mitigate some of the risks associated with tenant turnover and vacancy rates.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 23023 is moderate. While there are uncertainties and potential challenges, the high renter density offers a promising outlook for maintaining occupancy and income stability.
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.