Location: Accomack County, VA | Metro: Accomack County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 23301 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here's a direct look at those concerns and the data available to address them.
The first objection an investor might raise is whether the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $209,868. This is a valid concern given that mortgage payments can be a significant portion of a landlord's expenses. However, it's important to note that the FMR is set to ensure that housing costs do not exceed 30% of a household's income, which means it should cover the mortgage, property taxes, insurance, and maintenance. To definitively answer this question, one would need to calculate the specific mortgage payment based on current interest rates and loan terms, but the FMR is designed to be adequate for these purposes.
Another point of contention could be the level of renter demand, which stands at 33.0%. While this percentage indicates a substantial portion of the population is renting, it might seem low to some investors who prefer higher occupancy rates. Yet, it's crucial to consider that rental demand in any market fluctuates due to various factors such as job availability, housing stock, and economic conditions. The 33.0% figure suggests a steady demand for rentals, which is supportive of the investment case. Still, investors should conduct further local market research to understand the dynamics of renter demand in ZIP 23301 specifically.
Lastly, an investor might question if Housing Choice Vouchers will keep pace with the market rents of $944. The voucher system aims to provide assistance that covers the majority of a tenant's rent, typically up to the FMR. With the FMR slightly above the market rent, it indicates that vouchers should generally be sufficient to cover the cost. However, the effectiveness of vouchers can vary based on local administration and funding levels. It's advisable to check with local housing authorities for the most accurate and current information on how well vouchers cover market rents in ZIP 23301.
In summary, while the data provided offers insights into covering mortgage costs, the level of rental demand, and the adequacy of Housing Choice Vouchers, some questions require deeper analysis or local specifics to fully address. Investors should use this information as part of their broader decision-making process, considering additional factors such as location, property condition, and local economic trends.
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.