Section 8 Fair Market Rent (FMR) for ZIP 23666 - 2027

Investment Score for ZIP 23666

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	$1,620
1 Bedroom	$1,640
2 Bedrooms	$1,840
3 Bedrooms	$2,540
4 Bedrooms	$2,990
5 Bedrooms	$3,468
6 Bedrooms	$3,884
7 Bedrooms	$4,195
8 Bedrooms	$4,405

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	$1,640	$113,223	1.45%	A
2BR	$1,840	$212,250	0.87%	C
3BR	$2,540	$283,635	0.9%	C
4BR	$2,990	$380,289	0.79%	D
5BR	$3,468	$454,022	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23666 (Hampton, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23666 is set by HUD for 2026 as follows: - 0BR: $1630 - 1BR: $1650 - 2BR: $1870 (which represents 30.9% of the median household income) - 3BR: $2590 - 4BR: $3050 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent in different unit sizes. However, it is important to note that the actual rents in the area can be significantly higher. For instance, the Zillow median price for a 2BR unit is $211,130, which translates to a monthly rental cost of approximately $1,055 based on typical mortgage rates and property tax considerations. This is still above the FMR of $1870 for a 2BR unit, indicating that the FMR is lower than what the market typically charges. The constraints for voucher holders include the fact that landlords are not obligated to accept Section 8 vouchers, and many may prefer higher-paying tenants due to the higher market rents. Additionally, voucher holders must find units that do not exceed the FMR, which can be challenging given the high price-to-FMR ratio of 9.4x. This means that the median home value is nearly 9.4 times the FMR for a 2BR unit, suggesting a significant gap between market prices and the affordability threshold for voucher holders. #### Affordability & Renter Profile ZIP code 23666 has a population of 54,233, with 47.1% of residents being renters. The occupancy rate is 93.9%, indicating a relatively tight rental market where most available units are occupied. Given the median household income of $72,568, the 2BR FMR of $1870 represents a manageable portion of the income, but the overall high cost of living in the area could still pose challenges for lower-income households. The high price-to-FMR ratio suggests that the market is quite expensive relative to the FMR, making it difficult for voucher holders to find affordable housing. This tight market dynamic can lead to competition among renters, potentially driving up rents beyond the FMR levels. The 47.1% renter population indicates a substantial demand for rental properties, but the supply may not meet the needs of all residents, especially those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 23666 presents both opportunities and challenges. The FMRs provide a baseline for rental pricing, but the actual market rents are much higher. For example, a 2BR unit priced at the FMR of $1870 would likely be below market rates, which could affect cash flow if the investor relies solely on FMRs. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs, such as property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 40% of the FMR for these expenses, the net cash flow for a 2BR unit would be: \[ \text{Net Cash Flow} = \text{FMR} - (\text{FMR} \times 0.40) \] \[ \text{Net Cash Flow} = \$1870 - (\$1870 \times 0.40) \] \[ \text{Net Cash Flow} = \$1870 - \$748 \] \[ \text{Net Cash Flow} = \$1122 \] This calculation shows that even at the FMR, there is potential for positive cash flow, but it is important to note that this is below the market rate. Investors should also consider the risk of vacancy and the potential for higher market rents to attract more tenants. In terms of investment grade, the high price-to-FMR ratio and the tight rental market suggest that the ZIP code is moderately risky for Section 8-focused investors. While there is a significant number of renters, the high market rents may limit the pool of potential Section 8 tenants. #### Specific Actionable Insights 1. **Targeting Landlords**: Given the high price-to-FMR ratio, investors should focus on educating and incentivizing landlords to accept Section 8 vouchers. This could involve offering higher upfront payments or providing additional services like property management and maintenance to make the deal more attractive. 2. **Diversifying Tenant Base**: Investors should consider diversifying their tenant base beyond just Section 8 voucher holders. By accepting a mix of market-rate tenants and voucher holders, they can mitigate the risks associated with the tight rental market and the limited pool of voucher recipients. 3. **Improving Property Value**: Investors should look into improving the value of their properties to justify higher rents while still remaining within the FMR guidelines. Upgrades such as modern appliances, energy-efficient systems, and cosmetic improvements can enhance the appeal of the property and potentially increase the likelihood of attracting voucher holders who might have more flexibility in their budgets. #### Bottom Line For Section 8-focused investors, the ZIP code 23666 presents a mixed scenario. While there is a significant demand for rental properties and a large percentage of renters, the high price-to-FMR ratio and tight market conditions make it challenging to find and retain voucher holders. Therefore, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate their existing properties and consider strategies to improve their attractiveness to voucher holders, while also exploring ways to diversify their tenant base to ensure stable cash flow.

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.