Section 8 Fair Market Rent (FMR) for ZIP 23451 - 2027

Investment Score for ZIP 23451

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	$1,790
1 Bedroom	$1,810
2 Bedrooms	$2,030
3 Bedrooms	$2,800
4 Bedrooms	$3,300
5 Bedrooms	$3,828
6 Bedrooms	$4,287
7 Bedrooms	$4,630
8 Bedrooms	$4,862

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
1BR	$1,810	$288,159	0.63%	D
2BR	$2,030	$374,746	0.54%	F
3BR	$2,800	$688,489	0.41%	F
4BR	$3,300	$1,124,658	0.29%	F
5BR	$3,828	$1,692,156	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23451 (Virginia Beach, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23451 in Virginia Beach, VA, as of 2026, are as follows: - 0 Bedroom: $1800 - 1 Bedroom: $1830 - 2 Bedrooms: $2070 (which is 24.7% of the median household income) - 3 Bedrooms: $2870 - 4 Bedrooms: $3380 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent in each unit size category. However, the actual rental market in this area is significantly higher. For instance, the Zillow median price for a 2-bedroom home is $371,051, which translates into a monthly mortgage payment well above the FMRs. The price-to-FMR ratio for a 2-bedroom unit is 14.9x, indicating that the median home price is nearly 15 times the FMR. This suggests that landlords would likely find it challenging to attract tenants who only have access to Section 8 vouchers, as the rents they can charge are much lower than the market rate. Given these dynamics, voucher holders face significant constraints. They may struggle to find suitable housing within their budget, particularly for larger units like 3BR and 4BR homes. Landlords might be disincentivized from accepting Section 8 vouchers due to the disparity between FMR and market rents. #### Affordability & Renter Profile ZIP code 23451 has a population of 44,012, with 47.5% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 87.1% suggests that there is a relatively tight supply of rental units. Given the median household income of $100,697, the rental market is generally considered affordable for most residents. However, for those relying on Section 8 vouchers, the situation is quite different. The median income is high enough that 24.7% of it ($2070) is still a significant portion of what many households can afford. Yet, the actual market rents are far higher, making it difficult for voucher holders to secure housing. The tight market conditions mean that landlords can command higher rents, further exacerbating the affordability issue for voucher recipients. #### Investor Angle From an investor perspective, the ZIP code 23451 presents a mixed picture. While the median home price is high at $371,051, the FMRs indicate that rental income from properties in this area would be limited if the investor relies solely on Section 8 vouchers. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical mortgage payments and other expenses associated with owning a property. Assuming a 30-year fixed-rate mortgage at a conservative interest rate of 4%, the monthly mortgage payment for a $371,051 home would be approximately $1,760. Adding property taxes, insurance, maintenance, and other costs, the total monthly expense could easily exceed the FMRs listed. For example, a 2BR unit with an FMR of $2070 would barely cover the mortgage payment, let alone other expenses. Therefore, the investment grade for this ZIP code is low when considering only Section 8 vouchers. Investors would need to look beyond just the voucher program to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments where the FMRs are closer to the actual rental market rates. For instance, a 0BR unit at $1800 might be more feasible compared to a 2BR unit at $2070. 2. **Consider Mixed-Income Developments**: Developments that cater to both market-rate renters and voucher holders could provide a more balanced approach. By having a mix of units, some rented at market rates and others rented through Section 8 vouchers, investors can mitigate the risk of negative cash flow. 3. **Explore Alternative Programs**: Look into other government assistance programs that offer higher subsidies or incentives for landlords. Additionally, consider working with local non-profits or community organizations that can help bridge the gap between FMR and market rents. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation for ZIP code 23451 is to **Skip**. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow using only Section 8 vouchers. Investors should either diversify their portfolio by including market-rate rentals or explore alternative subsidy programs that offer better financial returns.

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.