Section 8 Fair Market Rent (FMR) for ZIP 23832 - 2027

Investment Score for ZIP 23832

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	$1,900
1 Bedroom	$1,980
2 Bedrooms	$2,150
3 Bedrooms	$2,650
4 Bedrooms	$3,250
5 Bedrooms	$3,770
6 Bedrooms	$4,222
7 Bedrooms	$4,560
8 Bedrooms	$4,788

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	$2,150	$307,335	0.7%	D
3BR	$2,650	$356,905	0.74%	D
4BR	$3,250	$454,245	0.72%	D
5BR	$3,770	$596,747	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23832 (Chesterfield, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 23832, as of 2026, are set at $1890 for 0BR units, $1980 for 1BR units, $2170 for 2BR units, $2720 for 3BR units, and $3350 for 4BR units. These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area significantly exceed these figures. For instance, the Zillow median price for a 2BR unit is $303,509, which translates into a rental value much higher than the FMR due to the high price-to-FMR ratio of 11.7x. This means that the typical rental cost for a 2BR unit is approximately $24,000 annually, far exceeding the $2170 monthly limit for a Section 8 voucher holder. Therefore, voucher holders face significant constraints in finding affordable housing within the ZIP code, as the majority of available rentals are likely priced well above their voucher limits. #### Affordability & Renter Profile ZIP code 23832 has a relatively low percentage of renters at 14.3%, indicating that it is primarily a homeownership-focused community. The occupancy rate stands at 98.5%, suggesting that the housing stock is nearly fully occupied, making it a tight market for both renters and buyers. Given the median household income of $111,684, most residents have the financial capacity to afford home purchases rather than rentals. The 2BR FMR of $2170 represents only 23.3% of the median income, implying that even without a mortgage, renting a 2BR unit would be manageable for many households. However, the high price-to-FMR ratio indicates that actual rental costs are much higher, making it challenging for lower-income individuals to find suitable housing. Consequently, the typical renter in this area is likely to be someone with a higher income who can afford the premium rental rates. #### Investor Angle From an investor’s perspective, the ZIP code 23832 presents a mixed picture when considering cash flow and investment grade. The high Zillow median price for 2BR units ($303,509) suggests that property values are robust, but the rental market is similarly expensive. At the FMR levels, the cash flow potential is limited because the actual rental rates are so much higher than the FMR. For example, a 2BR unit renting at the Zillow median would generate around $2500 per month, which is substantially more than the $2170 FMR. This makes it difficult for landlords to attract Section 8 tenants, as they would need to accept a lower rent than the market rate. Thus, while the ZIP code offers strong property appreciation potential, the cash flow from Section 8 tenants would be negative unless the landlord can secure other subsidies or find ways to reduce operating costs. #### Specific Actionable Insights 1. **Target Non-Section 8 Tenants**: Given the high actual rental rates and the low percentage of renters, investors should focus on attracting non-Section 8 tenants. This could involve marketing properties to higher-income renters or those who do not qualify for Section 8 vouchers. Investors might also consider offering amenities that appeal to a broader range of renters, such as modern appliances, updated finishes, and proximity to employment centers. 2. **Seek Alternative Subsidies**: If an investor decides to cater to Section 8 tenants, they should explore alternative subsidy programs that can help bridge the gap between FMR and market rents. This could include state or local housing assistance programs that provide additional funding to landlords. Additionally, investors could look into federal programs like the Low-Income Housing Tax Credit (LIHTC), which provides tax incentives for developing affordable housing. #### Bottom Line Given the tight rental market and the significant disparity between FMR and actual rental rates, the recommendation for Section 8-focused investors is to **skip** this ZIP code. The high price-to-FMR ratio of 11.7x makes it financially unviable to rely solely on Section 8 vouchers for cash flow. Instead, investors should consider areas where the FMR is closer to the actual rental rates, allowing for positive cash flow from Section 8 tenants. Alternatively, investors could target the broader rental market in ZIP code 23832 by focusing on higher-income renters, thereby achieving better returns on their investments.

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.