Section 8 Fair Market Rent (FMR) for ZIP 23434 - 2027

Investment Score for ZIP 23434

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	$1,360
1 Bedroom	$1,370
2 Bedrooms	$1,540
3 Bedrooms	$2,120
4 Bedrooms	$2,500
5 Bedrooms	$2,900
6 Bedrooms	$3,248
7 Bedrooms	$3,508
8 Bedrooms	$3,683

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
2BR	$1,540	$186,778	0.82%	C
3BR	$2,120	$306,700	0.69%	D
4BR	$2,500	$434,681	0.58%	F
5BR	$2,900	$534,317	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23434 (Suffolk, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23434 is set by HUD for 2026, with the following rates: - 0BR: $1400 - 1BR: $1420 - 2BR: $1610 - 3BR: $2230 - 4BR: $2630 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the number of bedrooms needed. However, the actual rental market in Suffolk, VA, appears to be significantly higher. For instance, the Zillow median price for a 2BR property is $182,400, which translates into a monthly mortgage payment of approximately $1,000 assuming a 4.5% interest rate and a 20% down payment. Given the price-to-FMR ratio of 9.4x, it suggests that the actual rental prices are likely to be around $15,000 annually, or about $1,250 per month for a 2BR unit. This is notably above the FMR of $1,610 for a 2BR unit, indicating that voucher holders face significant challenges in finding affordable housing within their budget. #### Affordability & Renter Profile ZIP code 23434 has a population of 54,387, with 31.5% being renters. The occupancy rate stands at 92.1%, suggesting a relatively tight market where most available units are occupied. The median household income is $79,877, meaning that a 2BR unit priced at $1,610 would consume 24.2% of the median income. This percentage is quite high, indicating that affordability is a concern for many residents, particularly those relying on Section 8 vouchers. Given the high price-to-FMR ratio, it’s clear that the market is not aligned with the financial capabilities of typical voucher recipients. The average renter in this area is likely to be middle-class individuals who might struggle to find affordable options without substantial subsidies. The mismatch between FMR and actual rents means that voucher holders have limited choices, often leading them to compete for the few units that fall within their budget. #### Investor Angle From an investor perspective, the ZIP code 23434 presents a challenging environment due to the high price-to-FMR ratio. If an investor were to purchase a 2BR property at the Zillow median price of $182,400, they would need to consider the potential rental income versus the mortgage payments and other expenses. Assuming a 4.5% interest rate and a 20% down payment, the monthly mortgage payment would be around $1,000. Additional costs such as property taxes, insurance, and maintenance could add another $200-$300 per month, bringing the total monthly expense to approximately $1,200-$1,300. However, the actual rental market price is estimated to be around $1,250 per month, which is below the FMR of $1,610. This indicates that the investor would not be able to achieve a positive cash flow if they relied solely on the FMR. Instead, they would need to charge more than the FMR to cover their expenses, making it difficult for Section 8 voucher holders to afford the unit. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR levels. For example, a 2BR unit priced at $161,000 would yield a monthly mortgage payment of around $900, allowing for a positive cash flow when rented at the FMR of $1,610. This strategy would make the units more accessible to Section 8 voucher holders. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like 0BR or 1BR might offer better opportunities for positive cash flow. A 0BR unit priced at $140,000 would have a monthly mortgage payment of around $800, providing a margin of $600 when rented at the FMR of $1,400. Similarly, a 1BR unit priced at $142,000 would have a monthly mortgage payment of around $810, offering a margin of $610 when rented at the FMR of $1,420. 3. **Evaluate Location-Specific Factors**: While the overall market in ZIP code 23434 is expensive, there might be pockets within the area where rental prices are lower. Investors should conduct thorough location-specific analyses to identify areas where the rental prices are closer to the FMR. This could involve looking at older neighborhoods or areas with less demand. #### Bottom Line For Section 8-focused investors, ZIP code 23434 (Suffolk, VA) is generally a challenging market due to the high price-to-FMR ratio. The recommendation is to **Skip** this ZIP code unless you can find properties priced significantly below the Zillow median. If you do decide to invest, focus on smaller units or properties in areas with lower rental prices to ensure positive cash flow and alignment with the needs of voucher holders.

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.