Location: Nottoway County, VA | Metro: Nottoway County, VA
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $233,215 | 0.6% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 23930 reveals a nuanced picture when comparing federal market rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1,020 for fiscal year 2026, the implied gross yield for a property in this area would be approximately 5.24%. This is calculated by taking the annual rent ($1,020) and dividing it by the median home value ($194,880).
In contrast, using the market rent figure of $984 from the Census ACS, the implied gross yield drops slightly to about 5.05%. This calculation is derived similarly by dividing the annual market rent by the median home value.
The difference between these two yields is minimal, suggesting that the federal guidelines closely align with local market conditions. However, given the renter density of 32.9%, it's important to note that the market rent scenario might be more reflective of reality. The renter density indicates that roughly one-third of the population in ZIP 23930 are renters, which could influence the demand for rental properties and the willingness to pay market rates.
The N/A-day DOM (days on market) suggests that there is limited data on how long properties typically stay on the market before being rented. This lack of information makes it challenging to predict the speed at which a property can be leased. Nevertheless, the higher gross yield based on FMR implies a better return on investment if the government sets the rent at the FMR level. However, since market conditions often dictate actual rental rates, the lower gross yield based on market rent is likely more practical for most landlords and small-portfolio investors.
In conclusion, while the 5.24% gross yield based on FMR is attractive, the 5.05% gross yield based on market rent is probably more realistic given the current economic landscape and renter demographics in ZIP 23930.
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.