Section 8 Fair Market Rent (FMR) for ZIP 23320 - 2027

Investment Score for ZIP 23320

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	$1,850
1 Bedroom	$1,870
2 Bedrooms	$2,100
3 Bedrooms	$2,890
4 Bedrooms	$3,410
5 Bedrooms	$3,956
6 Bedrooms	$4,431
7 Bedrooms	$4,785
8 Bedrooms	$5,024

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,870	$201,402	0.93%	C
2BR	$2,100	$261,498	0.8%	C
3BR	$2,890	$355,344	0.81%	C
4BR	$3,410	$503,078	0.68%	D
5BR	$3,956	$684,311	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23320 (Chesapeake, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23320 in 2026 indicate that the cost of renting a two-bedroom unit is $2,150, which represents 30.6% of the median household income of $84,305. However, the actual rental market in this area is significantly higher. According to Zillow, the median price for a two-bedroom home is $257,914, which translates into a price-to-FMR ratio of 10.0x. This means that the actual rental prices are likely much higher than the FMRs, creating a significant constraint for Section 8 voucher holders who can only afford units up to the FMR limit. For example, a three-bedroom unit has an FMR of $2,980, but the actual rental price could be far above this figure, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 23320 has a population of 59,108, with 35.5% of residents being renters. The occupancy rate stands at 96.7%, indicating a tight rental market where most available units are already occupied. Given the high median household income and the relatively low percentage of renters, it suggests that the rental market is primarily composed of middle-income families who might be struggling to find affordable housing options. The high price-to-FMR ratio further underscores the affordability challenges faced by renters, particularly those relying on Section 8 vouchers. With FMRs representing a substantial portion of the median income, it is clear that the market is underserved by affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 23320 presents both opportunities and challenges. The high actual rental prices compared to the FMR suggest that there is potential for cash flow if properties are rented out at market rates. However, for investors focusing solely on Section 8 vouchers, the situation is less favorable. The FMRs are significantly lower than the actual market rates, meaning that properties rented at FMR levels would likely generate negative cash flow. To illustrate, let’s consider a two-bedroom unit. At the FMR of $2,150 per month, the annual rent would be $25,800. If we assume a typical mortgage payment for a property priced at $257,914, with a 5% interest rate over a 30-year term, the monthly mortgage payment would be approximately $1,370, leading to an annual mortgage payment of around $16,440. Adding in other expenses such as property taxes, insurance, and maintenance, the total annual costs could easily exceed the annual rent income, resulting in a negative cash flow scenario. #### Specific Actionable Insights 1. **Focus on Affordable Housing Units**: Investors should focus on developing or acquiring properties that are specifically designed to cater to the needs of Section 8 voucher holders. This includes ensuring that the rent is set at or below the FMR levels. For instance, a two-bedroom unit should be priced at $2,150 or less to ensure compliance with the voucher program and avoid negative cash flow. 2. **Consider Multi-Family Properties**: Given the tight market conditions, multi-family properties could offer a better opportunity for positive cash flow. A three-bedroom unit with an FMR of $2,980 might be more feasible for generating positive cash flow when compared to single-family homes. Additionally, multi-family units often have economies of scale that can help offset some of the operational costs. 3. **Evaluate Non-Residential Investments**: Due to the challenging dynamics of the residential rental market, investors might want to consider non-residential investments such as commercial properties or mixed-use developments. These types of investments could provide a more stable and potentially higher return on investment, especially if they cater to the local business community or serve as a complement to residential units. #### Bottom Line For Section 8-focused investors, the ZIP code 23320 presents a challenging environment due to the high actual rental prices compared to the FMRs. The recommendation would be to **skip** investing in this area unless you can find properties that are significantly below market value and can be rented at or near the FMR levels. Alternatively, consider diversifying your portfolio by including non-residential investments or multi-family properties that can offer a better chance of positive cash flow.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.