Location: Cumberland County, VA | Metro: Buckingham County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The ZIP code 23123 presents several challenges for landlords considering participation in the Section 8 program. Firstly, tenant turnover is a significant concern, with the market rent at $1,052 being notably higher than the Fair Market Rent (FMR) of $990 for fiscal year 2026 in the metropolitan area. This disparity can lead to frequent changes in occupancy, increasing administrative burdens and operational costs.
Vacancy exposure is another critical issue. The days on market (DOM) for properties in this area is not available, which suggests that there might be periods where rental units remain unoccupied, leading to a loss of income. Given the typical home value of $221,360 and a median income of $50,203, landlords must also consider the potential for deferred maintenance. Properties in this ZIP code may require more upkeep than anticipated, especially if tenants have limited financial resources to cover non-rent related damages.
However, these risks are mitigated by the high renter share of 40.7%. High renter density often correlates with increased demand for housing assistance through vouchers, ensuring a steady stream of tenants who are committed to paying their rent on time. The Section 8 program guarantees a reliable source of income, even though it might be slightly lower than the market rate.
In conclusion, the verdict for ZIP 23123 as a first-time Section 8 landlord is moderate risk. While there are substantial risks associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter share provides a counterbalance, making it a viable option for those willing to navigate the challenges of the program.
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.