Location: Accomack County, VA | Metro: Accomack County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
The analysis of the Section 8 cap-rate picture for ZIP code 23341 in Virginia reveals some key insights, despite limited data points. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,050 per month. However, the median home value and market rent data are currently unavailable, which complicates a direct comparison.
To derive an implied gross yield, we can consider the rental income from a two-bedroom apartment under the Section 8 program. Assuming a property value based on typical values for similar ZIP codes, let's hypothetically use a property value of $250,000 for illustrative purposes. This assumption leads to an implied gross yield of approximately 4.9% ($1,050 x 12 / $250,000).
In the absence of market rent data, it's challenging to provide a precise comparison. However, if we were to assume a market rent that is typically higher than the Section 8 rates, say 20% above the FMR, the market rent would be around $1,260 per month. Using the same hypothetical property value, this would result in an implied gross yield of about 6.0% ($1,260 x 12 / $250,000).
The lack of specific data on renter density and days on market (DOM) makes it difficult to determine which scenario is more realistic. Generally, higher renter density and shorter DOM suggest a stronger rental market, which could support higher market rents. Conversely, lower density and longer DOM might indicate that Section 8 rates are more reflective of the current rental environment.
In conclusion:
Landlords and small-portfolio investors should carefully evaluate local market conditions before making investment decisions. While the Section 8 program offers stability, market rents may provide better returns if the local rental market supports them.
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.