Location: King and Queen County, VA | Metro: King and Queen County, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 23085 is based on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1090. However, the market rent data is currently unavailable, which makes it challenging to provide an exact percentage gap. Nonetheless, we can still draw meaningful conclusions.
Given that the FMR is set at $1090, landlords and small-portfolio investors should be aware that accepting Section 8 tenants could mean renting properties below the open-market rate. This scenario would reduce potential rental income and could affect the overall yield of their investment properties. The cost of housing voucher tenants below open-market rates can be significant, especially if the market rents are higher than the FMR. To illustrate, if the market rent were hypothetically $1200, the gap would be $110, or approximately 10.1%, indicating a direct loss per unit rented to a Section 8 tenant.
The analysis must also consider the broader context of ZIP 23085. Currently, 16.6% of residents are renters, and the median household income is $98,802. While the median home value is not available, these figures suggest a relatively stable economic environment. However, the reliance on Section 8 vouchers might be indicative of a portion of the population needing assistance to afford housing.
In conclusion, while the exact market rent is not provided, the FMR of $1090 serves as a benchmark. Landlords and investors should carefully weigh the benefits of increased occupancy stability that comes with Section 8 tenants against the reduced rental income compared to the open market. This analysis underscores the importance of understanding local market conditions and the impact of government-subsidized programs on rental yields.
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.