Location: Greensville County-Emporia city, VA | Metro: Brunswick County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 23856 reveals two distinct rental income situations: one based on the Fair Market Rent (FMR) and another based on the non-availability of market rent data.
Firstly, using the annualized 2BR FMR of $910 for fiscal year 2026, the implied gross yield can be calculated. The annual rental income would be $910 multiplied by 12, totaling $10,920 per year. Given the median home value in the area is $113,971, the gross yield is approximately 9.6%. This calculation is straightforward and provides a clear baseline for potential rental income under the Section 8 program.
Secondly, the lack of available market rent data makes it challenging to provide a precise comparison. However, if we consider that market rents might typically exceed FMRs, the absence of specific figures suggests an uncertainty about the exact gross yield. Assuming market rents were higher, say at a rate typical for areas with similar characteristics, the gross yield could potentially be greater than 9.6%. Yet, without concrete market rent data, this remains speculative.
To determine which scenario is more realistic, we must look at the local market conditions. ZIP code 23856 has a renter density of 25.7%, indicating a moderate level of demand for rental properties. Additionally, the days on market (DOM) being listed as N/A implies either insufficient data or a market where properties sell quickly, without needing extensive listing times. This quick turnover might suggest strong demand, possibly supporting higher market rents.
However, the Section 8 program's strict guidelines and the relatively low FMR compared to the median home value indicate that the first scenario, with a gross yield of 9.6%, is more likely to be the actual rental income landlords can expect when participating in the program. The second scenario, while theoretically possible, lacks the necessary data points to be considered a reliable projection for this ZIP code.
In conclusion, for ZIP code 23856, the gross yield under the Section 8 program with a 2BR FMR of $910 is approximately 9.6%. This figure should be used as the basis for investment decisions until more specific market rent data becomes available.
Data Sources: FMR data from HUD (2027). 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.