Section 8 Fair Market Rent (FMR) for ZIP 23452 - 2027

Investment Score for ZIP 23452

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	$1,710
1 Bedroom	$1,730
2 Bedrooms	$1,940
3 Bedrooms	$2,670
4 Bedrooms	$3,150
5 Bedrooms	$3,654
6 Bedrooms	$4,092
7 Bedrooms	$4,419
8 Bedrooms	$4,640

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	$1,940	$231,705	0.84%	C
3BR	$2,670	$353,518	0.76%	D
4BR	$3,150	$446,290	0.71%	D
5BR	$3,654	$834,933	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23452 (Virginia Beach, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23452 in Virginia Beach, VA, provide insight into the rental market dynamics for Section 8 voucher holders. According to the 2026 FMR data, the rates are as follows: - 0BR: $1760 - 1BR: $1780 - 2BR: $2020 (which is 30.7% of the median household income) - 3BR: $2800 - 4BR: $3300 These figures represent the maximum rent that can be charged for a property to qualify under the Section 8 program. However, it is important to note that these rates are often lower than the actual market rents. For instance, the Zillow median price for a 2BR home in this area is $225,685, which translates to a monthly mortgage payment of approximately $1,100 assuming a 30-year fixed-rate mortgage at 4.5%. This does not include property taxes, insurance, and maintenance costs, which would likely push the total cost above the FMR rate. Voucher holders face significant constraints due to the disparity between FMR and actual market rents. The FMR for a 2BR unit is $2020, while the median home price suggests a much higher cost of living. This means that voucher holders must find landlords willing to accept the lower FMR rates, which can be challenging given the high demand and limited supply of affordable housing. #### Affordability & Renter Profile ZIP code 23452 has a population of 58,455, with 37.3% of residents being renters. The occupancy rate stands at 95.8%, indicating a tight market where most available units are occupied. The median household income in this area is $79,085, suggesting a relatively affluent community. However, the 30.7% of median income allocated to a 2BR unit indicates that there is still a segment of the population that struggles with affordability. Given the high occupancy rate and the percentage of renters, the market is likely competitive for both tenants and landlords. Renters are likely a mix of young professionals, families, and individuals who are either earning below the median income or have chosen to rent rather than buy. The high price-to-FMR ratio of 9.3x further underscores the challenge of finding affordable rental properties, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 23452 presents a mixed picture. While the FMR rates are set by HUD, they do not necessarily reflect the actual cash flow potential for landlords. The Zillow median price for a 2BR home is $225,685, which implies a monthly mortgage payment of around $1,100. Adding property taxes, insurance, and maintenance costs could bring the total monthly expenses closer to $1,500. At the FMR rate of $2020 for a 2BR unit, this leaves a net positive cash flow of about $520 per month before accounting for other expenses such as utilities and repairs. However, the high price-to-FMR ratio of 9.3x suggests that the market is overpriced relative to the FMR, making it difficult for investors to find properties that offer a reasonable return on investment. The investment grade for this ZIP code would be considered moderate to low, given the tight rental market and the need to compete with non-voucher tenants who can pay higher rents. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that are priced closer to the FMR rates. For example, a 2BR unit priced at $2020 would be more attractive to voucher holders and could potentially offer better occupancy rates and stability. 2. **Consider Multi-Family Units**: With the FMR for a 3BR unit at $2800 and a 4BR unit at $3300, multi-family units might present a better opportunity for cash flow. These larger units could attract families or multiple roommates, allowing for higher rents while still remaining within the FMR limits. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help streamline the process of renting to voucher holders. This includes understanding the specific requirements and timelines for voucher acceptance, which can vary significantly from one jurisdiction to another. #### Bottom Line For Section 8-focused investors, the ZIP code 23452 presents a challenging but potentially rewarding market. The high price-to-FMR ratio and tight rental market suggest that finding properties that offer a good return on investment will be difficult. However, targeting lower-rent properties and engaging with local housing authorities can mitigate some of these challenges. **Recommendation**: Hold. Investors should proceed cautiously, focusing on properties that align closely with FMR rates and have strong potential for stable occupancy. Engaging with local housing authorities and considering multi-family units could improve the chances of success in this 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.