Section 8 Fair Market Rent (FMR) for ZIP 23455 - 2027

Investment Score for ZIP 23455

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	$1,720
1 Bedroom	$1,740
2 Bedrooms	$1,950
3 Bedrooms	$2,690
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

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	$1,740	$268,855	0.65%	D
2BR	$1,950	$298,124	0.65%	D
3BR	$2,690	$403,223	0.67%	D
4BR	$3,170	$590,625	0.54%	F
5BR	$3,677	$860,051	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23455 (Virginia Beach, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23455 in Virginia Beach, VA, for 2026 indicate that the rent for a two-bedroom apartment is set at $2040. However, the Zillow median price for a two-bedroom home in this area is $294,430, which translates into a price-to-FMR ratio of 12.0x. This means that the actual market rent for a two-bedroom unit could be significantly higher than the FMR, potentially creating a challenge for tenants using Section 8 vouchers. The voucher program typically covers only up to the FMR, so tenants would need to find properties willing to accept the lower rent or supplement their own funds to cover the difference. For instance, if the market rent for a two-bedroom unit is $2040 * 12 = $24,480 per year, voucher holders might struggle to find landlords who will accept $2040 per month. #### Affordability & Renter Profile ZIP code 23455 has a population of 49,977, with 38.4% of residents being renters. The median household income in this area is $94,069, which suggests that the majority of residents have relatively high incomes compared to the national average. Despite this, the occupancy rate stands at 94.1%, indicating a fairly tight rental market. Given that the FMR for a two-bedroom unit represents 26.0% of the median income, it is clear that while the rents are affordable for most households, they still represent a significant portion of income for those relying on Section 8 vouchers. This tight market makes it challenging for voucher holders to secure housing, especially since many landlords prefer higher-paying tenants. #### Investor Angle From an investor’s perspective, the ZIP code 23455 presents a mixed picture. The FMR for a two-bedroom unit is $2040, but the actual market rent could be much higher due to the price-to-FMR ratio. If we assume the market rent is around $2040 * 12 = $24,480 per year, or approximately $2040 per month, then an investor could potentially achieve cash flow positivity by setting rents closer to the FMR. However, this would require finding tenants willing to pay the FMR, which may not always be easy given the high percentage of renters and the tight market conditions. The investment grade in this ZIP code can be considered moderate to high, given the strong demand for rentals and the relatively high median income. However, the challenge lies in balancing the need to attract tenants with the desire to maximize returns. Investors should be prepared to offer competitive rents and amenities to attract both voucher holders and other renters. #### Specific Actionable Insights 1. **Rent Pricing Strategy**: Investors should consider setting rents slightly below the FMR for two-bedroom units ($2040) to attract Section 8 voucher holders. This could mean pricing at around $1900-$1950 per month, which is still above the FMR for one-bedroom units ($1800). This strategy would make the property more attractive to voucher holders without significantly reducing potential rental income. 2. **Property Location and Amenities**: Given the high price-to-FMR ratio, investors should focus on properties located in areas with better access to public transportation, schools, and shopping facilities. These amenities can help justify higher rents and make the property more appealing to both voucher holders and other renters. Additionally, ensuring that the property meets all necessary safety and maintenance standards can help avoid disputes with the Housing Authority. 3. **Tenant Screening**: While the tight rental market may lead some landlords to accept any tenant, it is crucial to maintain a rigorous screening process. This includes verifying income sources, conducting background checks, and ensuring that the tenant can meet the requirements of the lease agreement. This will help minimize the risk of non-payment and ensure a stable cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 23455 offers a moderately positive investment opportunity. The high median income and tight rental market suggest strong demand for rental properties, but the high price-to-FMR ratio indicates that securing tenants who can afford the rent without additional subsidies may be difficult. Therefore, the recommendation is to **Hold** investments in this ZIP code, focusing on properties that can be priced competitively for Section 8 voucher holders while maintaining profitability. Investors should also consider adding value through strategic renovations and location improvements to justify higher rents and attract a broader range of tenants.

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.