Section 8 Fair Market Rent (FMR) for ZIP 23323 - 2027

Investment Score for ZIP 23323

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	$1,700
1 Bedroom	$1,720
2 Bedrooms	$1,930
3 Bedrooms	$2,660
4 Bedrooms	$3,140
5 Bedrooms	$3,642
6 Bedrooms	$4,079
7 Bedrooms	$4,405
8 Bedrooms	$4,625

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	$1,930	$259,123	0.74%	D
3BR	$2,660	$358,870	0.74%	D
4BR	$3,140	$482,375	0.65%	D
5BR	$3,642	$627,000	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23323 (Chesapeake, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23323 in 2026 is set at $2000 for a two-bedroom unit, which represents 22.1% of the median household income of $108,730. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the local income levels. However, it is important to understand how these FMRs compare to actual rents in the area. According to the provided data, the Zillow median price for a two-bedroom home in ZIP 23323 is $250,412. The price-to-FMR ratio is 10.4x, meaning that the median home value is significantly higher than the rental costs. For voucher holders, this means that while they can find units within their budget, the actual rents might be lower than the FMRs, potentially limiting their options. For example, if a voucher holder has a two-bedroom voucher worth $2000 per month, they would likely struggle to find a property that matches the Zillow median price. The high price-to-FMR ratio suggests that landlords may be hesitant to accept vouchers due to the limited rent amount they can charge, especially for properties closer to the median home value. #### Affordability & Renter Profile ZIP code 23323 has a population of 43,043, with 16.3% being renters. This indicates that the majority of residents in the area are homeowners, suggesting a relatively stable and affluent community. The occupancy rate of 97.0% implies that the housing market is quite tight, with very few vacant units available. This tightness could contribute to upward pressure on rental rates, making it even more challenging for voucher holders to find suitable housing. Given the median household income of $108,730, most renters in this ZIP code are likely to be middle-class families who can afford higher rents without needing assistance. The 16.3% renter percentage is low, indicating that there is a smaller pool of potential tenants who rely on rental assistance programs like Section 8. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the FMR for a two-bedroom unit is $2000, an investor would need to ensure that the cost of acquiring and maintaining a property does not exceed this amount. The Zillow median price of $250,412 for a two-bedroom home suggests that the acquisition cost is high. Assuming a typical mortgage rate of around 5%, the monthly payment on a $250,412 loan would be approximately $1250, excluding property taxes, insurance, and maintenance costs. These additional expenses would likely push the total cost above the $2000 FMR, making it difficult to achieve positive cash flow solely through rental income. Moreover, the high price-to-FMR ratio of 10.4x indicates that the market is not aligned with the FMRs, which are designed to reflect average rental costs. This misalignment could make it challenging for investors to find properties that are both affordable and suitable for Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring one-bedroom or studio units, where the FMRs are lower ($1740 for 0BR and $1770 for 1BR). These units are more likely to align with the actual rental market, providing better cash flow opportunities. 2. **Consider Property Location**: Given the tight housing market, investors should consider properties located in areas with lower median home values. This will increase the likelihood of finding tenants who can afford the rent and also reduce the overall acquisition cost. 3. **Evaluate Property Costs Carefully**: Before investing, carefully evaluate the total cost of ownership, including acquisition, maintenance, and operating expenses. Ensure that these costs do not exceed the FMRs, particularly for two-bedroom units, to maintain positive cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 23323 presents significant challenges due to the high price-to-FMR ratio and the tight housing market. While the median household income supports affordability for most residents, the limited number of renters and the high acquisition costs make it less attractive for cash-flow positive investments. Therefore, the recommendation is to **Skip** this ZIP code unless you can identify specific opportunities in lower-rent units or areas with lower median home values. --- This analysis provides a clear picture of the dynamics in ZIP code 23323, highlighting the constraints for Section 8 voucher holders and the challenges for investors seeking positive cash flow. The actionable insights offer concrete guidance based on the specific data provided, ensuring that any decisions are grounded in the realities of the local market.

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.