Section 8 Fair Market Rent (FMR) for ZIP 23842 - 2027

Location: Surry County, VA | Metro: Richmond, VA HUD Metro FMR Area

Investment Score for ZIP 23842

F
Monthly Rent (2BR)
$1,490
Median Price (2BR)
$259,229
1% Rule
0.57%
Annual Yield
6.9%

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: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,490 $259,229 0.57% F
3BR $1,870 $358,757 0.52% F
4BR $2,300 $449,830 0.51% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,924
Median Household Income
$103,364
Housing Units
2,821
Renter Percentage
12.2%
Occupancy Rate
88.6%
Renter Occupied
304

The ZIP code 23842, located in Disputanta, VA, has a population of 6,924 residents, with only 12.2% identified as renters. This indicates that the area is predominantly homeowner-dominated rather than a renter-heavy zone. The median household income in this region stands at $103,364, which provides a benchmark against which rental costs can be evaluated.

The market rent for the area is reported at $955 per month, representing approximately 11% of the median household income. This percentage suggests that typical rents are relatively affordable for the majority of households in the area. However, the Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,270, which is higher than the current market rent. This discrepancy highlights that the local rental market may not fully utilize the potential subsidy available through Section 8 vouchers.

In such an environment, landlords should expect tenants who are likely to be eligible for Section 8 vouchers but may find it challenging to secure units due to the higher FMR compared to actual market rents. These tenants would typically have a household income below 50% of the area median income, making them sensitive to housing costs. Despite the homeowner-dominated nature of the area, there remains a segment of the population that relies on rental assistance programs to afford housing.

To summarize, ZIP 23842 is not a high-demand area for Section 8 vouchers, given the low percentage of renters and the relatively high median income. Landlords can anticipate a tenant pool that is modest in size but still in need of financial assistance to cover their housing expenses, with rents consuming a smaller portion of their income compared to the average in areas with higher renter populations.

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.