Section 8 Fair Market Rent (FMR) for ZIP 23938 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$830
1 Bedroom	$880
2 Bedrooms	$1,010
3 Bedrooms	$1,320
4 Bedrooms	$1,500
5 Bedrooms	$1,740
6 Bedrooms	$1,949
7 Bedrooms	$2,105
8 Bedrooms	$2,210

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the latest data, the Fair Market Rent (FMR) for ZIP 23938 in Dundas, VA, for metro FY 2026 is set at $960. In contrast, the market rent for 2023 is reported to be around $1,000 per month for a typical 1-bedroom apartment, including utilities. This indicates that the market rent exceeds the FMR by $40, representing a 4.2% increase over the FMR.

The gap between the FMR and the market rent highlights a significant challenge for landlords and small-portfolio investors considering Section 8 properties. With the median home value at $132,793 and the median income at $48,167, the disparity suggests that voucher tenants might struggle to afford market-rate rents, making it a yield play for investors. However, landlords should be aware that accepting Section 8 vouchers could mean setting rents below the open-market rate, which in this case would be $1,000 per month.

In ZIP 23938, only 10% of the population are renters, indicating a primarily owner-occupied market. Despite this, the potential for yield through Section 8 properties remains, but the decision to accept vouchers must be balanced against the possibility of lower rental income. The analysis is anchored in the context of a small town with a population of approximately 416, where the total number of households is 197. Given these demographics, the demand for affordable housing is likely to be met by the availability of Section 8 vouchers, but the supply of such units may be limited.

To summarize, while the FMR stands at $960, the actual market rent is higher at $1,000 per month. This makes Section 8 properties a yield play for investors willing to accept lower rents, but they must consider the broader economic context of the area, including the median income and home values.

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.