Section 8 Fair Market Rent (FMR) for ZIP 23466 - 2027
Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,680 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
To determine if you should buy in ZIP code 23466 (Unknown, VA) for Section 8 investment, follow this decision tree based on the provided data:
- Does the Fair Market Rent (FMR) of $1700 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not invest in this area for Section 8. The FMR is insufficient to clear your debt service, leading to financial losses.
- Is the market rent above, at, or below the FMR of $1700?
- If above: This indicates strong rental demand, but the property might not be eligible for Section 8 tenants as the rent exceeds the FMR limit.
- If at: The property aligns perfectly with the FMR, making it suitable for Section 8 tenants without risking the eligibility due to high rents.
- If below: While this makes the property eligible for Section 8, it suggests that there might be better opportunities where market rents match the FMR more closely.
- Are the percentage of renters and days on market (DOM) sufficient to meet demand?
- If the percentage of renters is high and DOM is low: There is strong demand for rentals in this area, which supports the viability of a Section 8 investment.
- If the percentage of renters is moderate and DOM is moderate: The demand is present but not overwhelming. Investment can still be considered, but it depends on other factors such as vacancy rates and competition.
- If the percentage of renters is low and DOM is high: Demand for rentals is weak, and properties take longer to rent out. This is not an ideal scenario for Section 8 investment.
The key to making a sound investment decision lies in the alignment between FMR and market rent, alongside the strength of rental demand in the area. Without specific figures for market rent and the percentage of renters, it's challenging to provide a definitive recommendation. However, using the framework above, you can assess whether ZIP 23466 is a viable option for your Section 8 portfolio.
Data Sources: FMR data from HUD (2027).
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.