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 | $1,010 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $137,400 | 0.84% | C |
| 3BR | $1,450 | $220,990 | 0.66% | D |
| 4BR | $1,780 | $316,810 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 23888 in Wakefield, VA, are significant and must be carefully considered. Tenant turnover is a major concern, as the market rent of $938 is notably lower than the Fair Market Rent (FMR) of $1200 for FY 2024, which could lead to frequent changes in occupancy. High tenant turnover can result in increased administrative costs and property wear and tear. Additionally, the vacancy exposure is heightened due to the lack of data on Days on Market (DOM), indicating uncertainty around how quickly properties can be filled. This unpredictability poses a financial risk, especially when coupled with the deferred-maintenance exposure. With a typical home value of $211,588 and a median income of $66,558, there's a substantial gap that could necessitate regular maintenance and upgrades to meet the standards required by the Section 8 program, further increasing operational expenses.
Despite these challenges, the high renter share of 35.4% provides a counterbalance. A large proportion of renters typically translates into higher demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate the risks associated with vacancy and turnover, ensuring a steady stream of tenants willing to use their vouchers in the area.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 23888 is moderate. While there are notable risks related to tenant turnover and maintenance costs, the high renter share suggests a robust demand for affordable housing, which can support a stable rental income over time.
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.