Section 8 Fair Market Rent (FMR) for ZIP 23127 - 2027
Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,520 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
To determine if you should buy in ZIP code 23127 for Section 8 purposes, follow this decision tree based on the provided data:
Step 1: Does the Fair Market Rent (FMR) of $1550 for fiscal year 2024 cover your debt service on a property in this area?
- Yes: Proceed to Step 2.
- No: Investing in ZIP 23127 for Section 8 is not financially viable as the rent does not cover your expenses.
Step 2: Compare the market rent to the FMR of $1550.
- Market rent is above $1550: The property will be more competitive in the general rental market rather than for Section 8 tenants. Consider if you want to focus on Section 8 or the broader market.
- Market rent is at or near $1550: Proceed to Step 3.
- Market rent is below $1550: This indicates that Section 8 rents might be higher than typical market rates, making it attractive for Section 8 participation.
Step 3: Evaluate the demand factors. Specifically, look at the percentage of renters and the days on market (DOM).
- Renters' percentage is high and DOM is low: There is strong demand for rentals in this area, which supports investing in Section 8 properties.
- Renters' percentage is moderate and DOM is moderate: Demand is stable but not particularly strong. Investment in Section 8 could still be considered depending on other factors such as location and property condition.
- Renters' percentage is low and DOM is high: Demand for rentals is weak, which could lead to difficulties in finding tenants willing to pay the FMR. This makes investing in Section 8 less favorable.
Note: Specific percentages and DOM figures were not provided in the data, so these evaluations must be made based on the actual numbers available for ZIP 23127.
Data Sources: FMR data from HUD (2027).
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.