Section 8 Fair Market Rent (FMR) for ZIP 23608 - 2027

Investment Score for ZIP 23608

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	$1,340
1 Bedroom	$1,360
2 Bedrooms	$1,520
3 Bedrooms	$2,100
4 Bedrooms	$2,470
5 Bedrooms	$2,865
6 Bedrooms	$3,209
7 Bedrooms	$3,466
8 Bedrooms	$3,639

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	$1,520	$185,447	0.82%	C
3BR	$2,100	$291,565	0.72%	D
4BR	$2,470	$359,838	0.69%	D
5BR	$2,865	$410,923	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23608 (Newport News, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23608 in Newport News, VA, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1620 per month. However, the Zillow median price for a two-bedroom home in this area is $185,615, which translates into a price-to-FMR ratio of 9.5x. This means that the median home price is approximately 9.5 times the monthly rent for a two-bedroom unit. In reality, the actual rental prices in the area could be higher or lower than the FMR. The FMR serves as a guideline for determining the maximum amount of rent assistance that a Section 8 voucher holder can receive. If the actual rent exceeds the FMR, the tenant must pay the difference out-of-pocket. Given the high price-to-FMR ratio, it is likely that many units in the area are priced above the FMR, creating financial strain for voucher holders who might have to find units that are significantly below market rates or contribute a substantial portion of their income towards rent. #### Affordability & Renter Profile ZIP code 23608 has a population of 43,641, with 50.4% of residents being renters. This indicates a strong rental market where half of the households are dependent on rental housing. The median household income in the area is $71,126, and 27.3% of this income goes toward the rent of a two-bedroom unit at FMR. This suggests that the rental market is moderately affordable for those earning the median income, but it also implies that there is a significant portion of the population that may struggle to afford housing, especially if they are earning below the median income. Given the occupancy rate of 94.8%, the market appears to be relatively tight, with few vacancies available. This tightness can drive up rental prices, making it even more challenging for Section 8 voucher holders to find suitable housing. The high percentage of renters and the tight occupancy rate indicate a robust demand for rental properties, which is a positive sign for landlords and investors looking to enter the market. #### Investor Angle From an investor perspective, the ZIP code 23608 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1620, which is the maximum rent that can be charged to a Section 8 voucher holder. However, the actual rental prices in the area are likely higher due to the strong demand and limited supply. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs for rental properties. These costs include property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of 50% of the FMR for these expenses, the net income would be around $810 per month for a two-bedroom unit. This is a modest return but still positive. The investment grade for this ZIP code can be assessed based on the demand for rental properties and the likelihood of finding tenants. With a high occupancy rate and a large percentage of renters, the risk of vacancy is low, making this a stable investment option. However, the challenge lies in finding units that are priced at or below the FMR, as many units are likely to be priced higher due to market conditions. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring units that are priced at or below the FMR. For example, a two-bedroom unit priced at $1620 or less will be attractive to Section 8 voucher holders and ensure compliance with HUD guidelines. This strategy will help maximize the number of potential tenants and reduce the risk of vacancy. 2. **Consider Multi-Family Properties**: Given the high demand for rental housing, multi-family properties can offer a better return on investment. A property with multiple units, such as a duplex or small apartment building, can spread the fixed costs across several units, improving overall cash flow. For instance, a three-bedroom unit priced at $2250 would still be within the FMR range, providing a slightly higher income per unit. 3. **Evaluate Property Condition**: Since the market is tight, properties in good condition are likely to command higher rents. Investors should evaluate the condition of the properties before purchasing to ensure that they can be rented out at or near the FMR without requiring extensive renovations. Poorly maintained properties may struggle to attract tenants willing to pay the FMR. #### Bottom Line For Section 8-focused investors, ZIP code 23608 offers a mixed picture. While the strong rental demand and high occupancy rate make it a stable market, the challenge lies in finding units that are priced at or below the FMR. The high price-to-FMR ratio suggests that many units are overpriced for voucher holders, leading to potential difficulties in securing tenants. **Recommendation**: Hold. The market is tight and offers stability, but the difficulty in finding units that meet the FMR criteria makes it challenging for Section 8-focused investors. Investors should carefully evaluate the specific units they are considering to ensure they are priced appropriately and in good condition to attract 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.