Section 8 Fair Market Rent (FMR) for ZIP 23874 - 2027

Location: Southampton County-Franklin city, VA | Metro: Southampton County-Franklin city, VA HUD Nonmetro FMR Area

Investment Score for ZIP 23874

Monthly Rent (2BR)

$1,030

Median Price (2BR)

$151,204

1% Rule

0.68%

Annual Yield

8.17%

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	$800
1 Bedroom	$830
2 Bedrooms	$1,030
3 Bedrooms	$1,310
4 Bedrooms	$1,720
5 Bedrooms	$1,995
6 Bedrooms	$2,234
7 Bedrooms	$2,413
8 Bedrooms	$2,534

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	$1,030	$151,204	0.68%	D
3BR	$1,310	$257,959	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

673

Median Household Income

$58,628

Housing Units

481

Renter Percentage

20.6%

Occupancy Rate

76.7%

Renter Occupied

The ZIP code 23874, encompassing the area around Newsoms, Virginia, is a region characterized by modest housing values and rental rates that reflect a stable, yet not highly lucrative, market for real estate investment. This analysis delves into key metrics that inform potential landlords and small-portfolio investors about the current landscape.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 23874 for fiscal year 2024 is set at $1160. This figure serves as a benchmark for what is considered a reasonable rent amount and can guide landlords in setting their own rental prices.
The Census Bureau's American Community Survey (ACS) indicates that the average market rent for properties in this ZIP code is $860. This suggests that the actual rents charged may be below the FMR, leaving room for slight increases without pricing out tenants.
The median home value in ZIP 23874 stands at $219,677. This is a moderate figure that aligns with the overall economic profile of the area, indicating a middle-class neighborhood.
Renters make up 20.6% of the population in this ZIP code. While this percentage is relatively low, it still represents a significant segment of the market, particularly for small-portfolio investors looking to target this demographic.
The median income in the area is $58,628. This provides insight into the financial capabilities of potential tenants and homeowners, suggesting a market that is likely to support rents and property values within a reasonable range.

Synthesizing these points, investors should recognize that while the market in ZIP 23874 offers a stable environment with modest appreciation potential, the gap between the FMR and the actual market rent presents a strategic opportunity to increase rental income slightly without alienating tenants. The low percentage of renters and moderate home values indicate a balanced market, suitable for both rental and owner-occupied investments. However, the median income level suggests caution in setting prices too high, ensuring that they remain accessible to the local population. Overall, this area is best suited for investors seeking steady returns rather than rapid growth opportunities.

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.