Location: Southampton County-Franklin city, VA | Metro: Richmond, VA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $122,696 | 0.86% | C |
| 3BR | $1,430 | $185,609 | 0.77% | D |
U.S. Census Bureau data (2024)
To decide whether to buy in ZIP code 23867 (Jarratt, VA) for Section 8 purposes, follow these steps:
1) Does the Fair Market Rent (FMR) of $1190 cover the debt service on a $172,435 property?
Yes: The FMR of $1190 is sufficient to cover the debt service on a property valued at $172,435. This indicates that a landlord can expect to meet their financial obligations through Section 8 rental income.
No: If the FMR of $1190 does not cover the debt service on a property valued at $172,435, then purchasing for Section 8 is not financially viable. Landlords must ensure that the rental income will at least meet their mortgage payments and other financial responsibilities.
It Depends: This scenario would arise if the FMR is close to but not fully covering the debt service. Additional factors such as property taxes, insurance, and maintenance costs need to be considered. However, given the data, the FMR should comfortably cover the debt service on a property of this value.
2) How does the market rent of $1,009 compare to the FMR?
Above FMR: If the market rent exceeds the FMR, landlords might consider holding off on Section 8 properties until the market adjusts. In this case, the market rent is slightly below the FMR, suggesting that there is potential for higher rental income through Section 8.
At FMR: With the market rent being very close to the FMR, landlords can expect competitive pricing when renting to Section 8 tenants. This means they will likely receive fair compensation relative to the local rental market.
Below FMR: Since the market rent of $1,009 is just under the FMR, landlords can still expect to receive a rent amount that is relatively favorable compared to the typical market rates, making Section 8 an attractive option.
3) Is there enough demand with 29.6% of residents being renters and an unknown number of days on the market (DOM)?
Yes: The 29.6% renter population suggests a decent level of demand. While the exact number of days on the market is not available, the percentage of renters indicates that there are enough potential tenants to fill vacancies.
No: If the renter population were significantly lower, there would be less demand. However, with 29.6% of residents renting, this is not the case for Jarratt, VA.
It Depends: This would be relevant if the DOM was unusually high, indicating difficulty in renting out units. Given the data, we cannot definitively say how quickly properties are rented, but the 29.6% figure supports a reasonable demand.
In conclusion, based on the data provided, landlords can proceed with confidence in acquiring properties in ZIP code 23867 for Section 8 tenancy. The FMR adequately covers the debt service, the market rent is close to the FMR, and the renter population provides sufficient demand.
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.