Section 8 Fair Market Rent (FMR) for ZIP 23454 - 2027

Investment Score for ZIP 23454

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	$1,680
1 Bedroom	$1,700
2 Bedrooms	$1,910
3 Bedrooms	$2,630
4 Bedrooms	$3,100
5 Bedrooms	$3,596
6 Bedrooms	$4,028
7 Bedrooms	$4,350
8 Bedrooms	$4,568

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
1BR	$1,700	$166,449	1.02%	B
2BR	$1,910	$269,380	0.71%	D
3BR	$2,630	$416,059	0.63%	D
4BR	$3,100	$597,791	0.52%	F
5BR	$3,596	$1,072,727	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23454 (Virginia Beach, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23454 in Virginia Beach, VA, for 2026 indicate that the rent for a two-bedroom apartment is set at $1970. This represents 23.0% of the median household income of $102,796, which is a relatively high proportion compared to typical affordability standards. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median home value of $264,716. The price-to-FMR ratio of 11.2x suggests that the actual market rents are much higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing within their budget. For instance, if a voucher holder is looking for a three-bedroom apartment, the FMR is $2730. However, given the high price-to-FMR ratio, the actual market rent could be over $30,000 annually, far exceeding what a voucher can cover. This discrepancy creates a significant constraint for voucher holders, who often have to settle for lower-quality housing or face long wait times for available units. #### Affordability & Renter Profile ZIP code 23454 has a population of 58,178, with 33.1% of residents being renters. The occupancy rate stands at 95.2%, indicating a tight rental market where demand consistently outstrips supply. Given the median household income of $102,796, the majority of residents are likely middle-class individuals or families who can afford higher rents. However, the 33.1% renter population includes a mix of income levels, including those who rely on government assistance like Section 8 vouchers. The high price-to-FMR ratio of 11.2x suggests that the rental market is highly competitive and expensive. This makes it difficult for low-income renters to find affordable housing, especially when considering the limited coverage of Section 8 vouchers. The tight market conditions mean that landlords can charge premium rents, further exacerbating the affordability issue for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 23454 presents both opportunities and challenges. The high median home value of $264,716 and the tight rental market suggest strong demand for rental properties. However, the cash flow potential for investors focusing on Section 8 tenants is limited due to the strict rent caps imposed by the FMR. To illustrate, a two-bedroom apartment with an FMR of $1970 would generate annual rental income of approximately $23,640. In comparison, the median home value of $264,716 implies that similar properties could fetch much higher market rents, potentially doubling the annual income. Therefore, while there is a strong demand for rental properties, the cash flow for Section 8-focused investments is constrained by the FMR limits. Investors should also consider the investment grade of the ZIP code. With a median household income of $102,796 and a high occupancy rate, the area is generally considered stable and attractive. However, the reliance on government vouchers and the high price-to-FMR ratio indicate a need for careful financial planning and possibly a focus on property management to ensure profitability. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high price-to-FMR ratio, investors should focus on developing or acquiring lower-rent units, such as one-bedroom apartments, which have an FMR of $1740. These units are more likely to align with the rental caps set by Section 8, providing a better chance for cash flow positivity. 2. **Consider Mixed-Income Developments**: To balance the tight market and the constraints of Section 8 vouchers, investors might consider mixed-income developments. By offering a combination of market-rate and subsidized units, they can cater to a broader range of tenants and potentially achieve higher overall returns. 3. **Enhance Property Management**: Due to the limited cash flow potential from Section 8 vouchers, effective property management becomes crucial. Investors should focus on maintaining high-quality properties to attract and retain tenants, thereby reducing vacancy rates and increasing long-term profitability. #### Bottom Line For Section 8-focused investors, the ZIP code 23454 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. While the area is financially stable and has a high occupancy rate, the cash flow potential is limited by the FMR caps. Therefore, the recommendation is to **Skip** this ZIP code for pure Section 8 investments and instead explore opportunities in areas with a lower price-to-FMR ratio or consider mixed-income developments to diversify tenant profiles and improve financial outcomes.

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.