Section 8 Fair Market Rent (FMR) for ZIP 23059 - 2027

Investment Score for ZIP 23059

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,910
1 Bedroom	$1,990
2 Bedrooms	$2,170
3 Bedrooms	$2,680
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,990	$208,269	0.96%	C
2BR	$2,170	$357,193	0.61%	D
3BR	$2,680	$476,013	0.56%	F
4BR	$3,280	$671,553	0.49%	F
5BR	$3,805	$915,567	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23059 (Glen Allen, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Glen Allen, VA (ZIP 23059), as of 2026, is set at $2200 for a two-bedroom apartment. This figure represents approximately 16.7% of the median household income in the area, which stands at $157,897. The FMR is designed to ensure that low-income households can afford decent housing, but it often falls short when compared to actual rental prices in the market. In Glen Allen, the Zillow median price for a two-bedroom home is $353,216, which translates to a monthly rent of around $1472 based on typical mortgage payments and property taxes. However, the price-to-FMR ratio is 13.4x, indicating that the actual rental market is significantly higher than the FMR. For example, if a two-bedroom apartment were rented out at the Zillow median price, the monthly rent would be approximately $2943, far exceeding the $2200 FMR. This discrepancy creates significant constraints for voucher holders. They must find landlords willing to accept the lower FMR rates, which can be challenging given the high demand and limited supply of affordable units. Additionally, the FMR does not cover the full cost of renting a two-bedroom unit in Glen Allen, meaning that voucher holders may have to pay a substantial portion of their income towards rent, leaving little for other expenses. #### Affordability & Renter Profile The population of Glen Allen is 42,522, with 21.6% being renters. Given the high median household income, the majority of residents likely own their homes. However, the 21.6% who rent represent a significant segment of the market. The occupancy rate of 97.2% suggests that the rental market is quite tight, with very few vacant units available. This tightness is further exacerbated by the high price-to-FMR ratio, making it difficult for low-income households to find suitable accommodation. The renter profile in Glen Allen is likely diverse, but given the high median income, many renters might be young professionals or families who prefer renting over buying due to lifestyle choices or financial considerations. The high rental prices indicate that those who do rent are likely able to afford above-average rents, but they still face challenges in finding affordable options within the FMR range. #### Investor Angle From an investor perspective, the ZIP code 23059 presents a mixed picture. While the Zillow median price for a two-bedroom home is $353,216, the actual rental income at the FMR level is only $2200 per month. To determine if this is cash-flow positive, we need to consider the typical operating costs, including property taxes, insurance, maintenance, and mortgage payments. Assuming a conservative estimate of $1000 per month for these costs, the net cash flow would be $1200 per month. However, this amount is still below the Zillow median rent of $2943, suggesting that properties rented at the FMR level would not generate positive cash flow. Given the high price-to-FMR ratio and the tight rental market, the investment grade for this ZIP code is relatively low for Section 8-focused investors. The primary challenge is finding tenants who can afford the full rent, even with a voucher, due to the high actual rental prices compared to the FMR. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are already priced within or slightly above the FMR range. For instance, a two-bedroom apartment priced at $2500 per month would be more attractive to voucher holders and could potentially generate positive cash flow if the operating costs are kept under $1300 per month. 2. **Consider Property Location**: Given the tight rental market, properties located in areas with lower competition might be more successful in attracting Section 8 tenants. For example, units near public transportation hubs or schools might be more desirable and easier to rent out. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the demand for Section 8 vouchers and help secure tenants. Additionally, understanding the specific requirements and processes for accepting vouchers can streamline the leasing process. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 23059 is to **Skip**. The high price-to-FMR ratio and tight rental market make it challenging to find properties that can generate positive cash flow while remaining affordable for voucher holders. Investors looking to enter this market should carefully evaluate the potential for securing tenants and managing costs before proceeding.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.