Location: Brunswick County, VA | Metro: Brunswick County, VA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 23868 reveals a mixed picture when comparing federal market rent (FMR) and market rent figures against the median home value.
Using the annualized 2BR FMR of $910 (for FY 2026), the implied gross yield for a property in this ZIP code would be approximately 7.7%. This calculation is derived by dividing the annual rental income ($910 x 12 months = $10,920) by the median home value ($118,310).
In contrast, the market rent figure of $839, based on Census ACS data, suggests a lower implied gross yield of about 7.1%. This is calculated by multiplying the monthly market rent by 12 months ($839 x 12 = $10,068) and then dividing by the median home value ($118,310).
The difference between these two yields highlights the variance between federally subsidized rents and market rates. However, given the 40.8% renter density in ZIP 23868, it's important to note that a significant portion of potential tenants might be looking for affordable housing options. The fact that the days on market (DOM) is listed as N/A could indicate either a very active market where properties sell quickly or an inactive market with few listings.
Considering the higher FMR versus the market rent, the 7.7% gross yield scenario appears more favorable for landlords participating in the Section 8 program. This is because the subsidy aims to cover the gap between what low-income tenants can afford and the market rate, thus providing a higher effective rental income. Nonetheless, landlords should also consider the administrative burden and eligibility requirements of the Section 8 program, which can affect the overall investment decision.
The 7.1% gross yield based on market rent reflects the typical returns landlords might expect from renting without the Section 8 subsidy. While this yield is lower, it may be more realistic for those who do not wish to engage in the Section 8 program or for whom the program is not available.
Investors must weigh these gross yields against their own financial goals and the specifics of their property portfolio. The higher yield from the FMR scenario could be attractive for those willing to navigate the complexities of the Section 8 program, while the lower market rent yield might appeal to those seeking a simpler rental management process.
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.