Section 8 Fair Market Rent (FMR) for ZIP 23112 - 2027

Investment Score for ZIP 23112

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	$1,750
1 Bedroom	$1,830
2 Bedrooms	$1,990
3 Bedrooms	$2,460
4 Bedrooms	$3,010
5 Bedrooms	$3,492
6 Bedrooms	$3,911
7 Bedrooms	$4,224
8 Bedrooms	$4,435

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
2BR	$1,990	$309,081	0.64%	D
3BR	$2,460	$374,295	0.66%	D
4BR	$3,010	$481,164	0.63%	D
5BR	$3,492	$623,955	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23112 (Midlothian, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23112 in Midlothian, Virginia, are as follows for 2026: - 0BR: $1720 - 1BR: $1800 - 2BR: $1980 (20.4% of median income) - 3BR: $2480 - 4BR: $3050 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent in different unit sizes. However, the actual rents in the area may be higher, especially considering the price-to-FMR ratio of 12.9x for a 2BR unit. This means that the Zillow median price for a 2BR unit is $305,696, which is significantly higher than the FMR. For voucher holders, this implies that finding affordable housing within their budget constraints can be challenging. The FMR for a 2BR unit is only $1980, whereas the median home value is $305,696, indicating a substantial gap between what voucher holders can afford and the actual market prices. #### Affordability & Renter Profile The population of Midlothian is 57,016, with 19.4% of residents being renters. Given the median household income of $116,465, the rental market appears to cater primarily to middle to upper-middle-class individuals. The occupancy rate of 97.6% suggests that the market is relatively tight, with few vacant units available. This high occupancy rate indicates strong demand for rental properties, but it also means that there is limited supply, making it difficult for voucher holders to find suitable accommodation. The affordability of the rental market is further strained by the high price-to-FMR ratio. A 2BR unit’s Zillow median price is $305,696, which is 12.9 times the FMR of $1980. This suggests that the rental market is not aligned with the FMR, making it less accessible for low-income families who rely on Section 8 vouchers. The median income is relatively high, and the percentage of renters is lower compared to other areas, implying that the rental market is skewed towards higher-income individuals. #### Investor Angle From an investor perspective, the ZIP code 23112 offers a mixed landscape. While the median home values are high, the rental market is not necessarily aligned with these values. The FMR for a 2BR unit is $1980, which is only 20.4% of the median income. This indicates that the rental market is not overly expensive relative to the income levels in the area. However, the high price-to-FMR ratio suggests that the rental market is not entirely cash-flow positive at the FMR level. Given the high occupancy rate and strong demand for rental properties, investors might still find opportunities to generate positive cash flow if they can offer competitive rental rates while maintaining profitability. The investment grade would likely be moderate to high, considering the strong demand and relatively stable income levels in the area. However, the challenge lies in balancing rental rates that are attractive to tenants while ensuring they are within the FMR limits set by the government. #### Specific Actionable Insights 1. **Target Middle-Income Renters**: Given the high median income and the tight rental market, investors should consider targeting middle-income renters who are less reliant on Section 8 vouchers. Offering amenities and services that appeal to this demographic could help attract tenants willing to pay closer to the Zillow median price. 2. **Focus on Smaller Units**: With the FMR for smaller units (0BR and 1BR) being lower ($1720 and $1800 respectively), investors might find it easier to operate within these constraints. Smaller units are often more affordable and can be rented out to single individuals or couples who do not require larger spaces. 3. **Consider Property Management Services**: Given the complexity of operating within FMR constraints and the need to manage a property effectively, investors might benefit from partnering with professional property management services. These services can help navigate the regulations and ensure that the property remains attractive to potential tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 23112 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation would be to **Skip** this area unless you can find properties that are significantly below the Zillow median prices and within the FMR limits. If you are looking to invest in a broader rental market, targeting middle-income renters and focusing on smaller units might provide better opportunities. However, the overall market conditions suggest that this area is not ideal for those strictly relying on Section 8 vouchers.

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.