Section 8 Fair Market Rent (FMR) for ZIP 23803 - 2027

Investment Score for ZIP 23803

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	$1,300
1 Bedroom	$1,360
2 Bedrooms	$1,490
3 Bedrooms	$1,870
4 Bedrooms	$2,300
5 Bedrooms	$2,668
6 Bedrooms	$2,988
7 Bedrooms	$3,227
8 Bedrooms	$3,388

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	$1,490	$141,547	1.05%	B
3BR	$1,870	$248,388	0.75%	D
4BR	$2,300	$322,829	0.71%	D
5BR	$2,668	$379,758	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23803 (Petersburg, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23803 in Petersburg, VA, indicate that the rental costs for various unit sizes are as follows: $1340 for 0BR units, $1400 for 1BR units, $1540 for 2BR units, $1950 for 3BR units, and $2410 for 4BR units. These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area can be significantly higher. For instance, the Zillow median price for a 2BR home is $132,907, which translates into a monthly mortgage payment of approximately $664.53 based on a 30-year fixed-rate mortgage at 4.5%. This suggests that the rental market is much more expensive than the FMRs, especially when considering that landlords typically aim for a higher return on investment than just covering mortgage payments. Given the FMR for a 2BR unit is $1540, which is only 32.0% of the median household income of $57,813, it implies that many residents, particularly those relying on Section 8 vouchers, face significant financial constraints. The disparity between FMR and actual rents means that voucher holders might struggle to find affordable housing options that meet their needs and budget. #### Affordability & Renter Profile ZIP code 23803 has a high percentage of renters at 48.9%, indicating a robust demand for rental properties. The occupancy rate stands at 84.2%, suggesting that there is a moderate level of vacancy, but the market is still relatively tight. With a median household income of $57,813, the majority of renters are likely to be low-income families who rely heavily on government assistance programs like Section 8. The price-to-FMR ratio of 7.2x for 2BR units highlights the significant gap between the cost of buying and renting. This ratio indicates that the median price of a 2BR home is 7.2 times the FMR, making it challenging for renters to transition into homeownership. Consequently, the rental market remains highly competitive, with many residents having limited options beyond what they can afford through their vouchers. #### Investor Angle From an investor perspective, the ZIP code 23803 presents both opportunities and challenges. The FMRs provide a benchmark for rental pricing, but the actual rents in the area are much higher. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with property ownership. Assuming a 2BR unit, the FMR is $1540 per month. If we subtract the average monthly mortgage payment of $664.53, we have a remaining amount of $875.47. This figure must cover property taxes, insurance, maintenance, and other operational costs. Property taxes in Chesterfield County are around 1.1% of the property value, so for a $132,907 home, the annual tax would be approximately $1462, or $121.83 per month. Insurance costs can vary widely but are generally around $100 per month. Maintenance and other operational costs could add another $100-$150 per month. Therefore, the total monthly expenses could range from $321.83 to $371.83, leaving a potential net cash flow of $1118.64 to $1218.17 per month. This analysis suggests that the ZIP code 23803 is indeed cash-flow positive at FMR, although the margins are relatively thin. The investment grade would depend on the risk tolerance of the investor and the stability of the local economy. Given the high percentage of renters and the moderate occupancy rate, the demand for rental properties is likely to remain steady, making this a viable investment option for those willing to work within the constraints of the Section 8 program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high percentage of renters and the significant gap between FMR and actual rents, smaller units such as 0BR and 1BR might be more attractive to voucher holders. Landlords should consider offering these units at or near FMR levels to maximize occupancy and ensure stable cash flows. For example, a 1BR unit at $1400 per month would be fully covered by a Section 8 voucher, providing a guaranteed tenant. 2. **Consider Property Location**: The location of the property within ZIP code 23803 can significantly impact its attractiveness to renters. Properties located closer to public transportation, schools, and essential services will likely have higher demand and better occupancy rates. Investors should prioritize locations that offer these amenities to increase the likelihood of finding suitable tenants. 3. **Evaluate Property Condition**: Since many voucher holders are looking for affordable housing, the condition of the property plays a crucial role in attracting and retaining tenants. Investing in properties that require minimal repairs or upgrades can help reduce initial capital expenditures and improve long-term profitability. Additionally, maintaining a high standard of living conditions can help avoid disputes over habitability and ensure compliance with HUD standards. #### Bottom Line For Section 8-focused investors, ZIP code 23803 offers a mixed picture. While the rental market is tight and there is a high demand for affordable housing, the actual rents far exceed the FMRs. However, the ZIP code is cash-flow positive at FMR levels, making it a viable investment opportunity for those willing to work within the constraints of the program. The recommendation is to **buy** properties in this ZIP code, particularly smaller units, and focus on well-located and well-maintained properties to ensure steady occupancy and profitability. In summary, the high renter population and moderate occupancy rate suggest a strong demand for rental properties. By focusing on smaller units and ensuring the properties are in good condition, investors can leverage the Section 8 program to achieve positive cash flows and a stable investment.

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.