Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
The ZIP code 23025, located within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, can serve as a diversifier in a Section 8 portfolio strategy. This classification is based on the 16.8% renter share and the median income of $71,563.
Firstly, the 16.8% renter share indicates that a significant portion of the population in this area relies on rental properties, making it a suitable location for landlords and small-portfolio investors looking to expand their tenant base. The presence of a substantial number of renters suggests demand for affordable housing options, which aligns well with the goals of Section 8 programs.
Secondly, the median income of $71,563 provides insight into the financial stability of potential tenants. This figure is above the national average, implying a higher likelihood of timely rent payments and fewer instances of eviction or delinquency. Additionally, the income level supports the idea that tenants may be better positioned to handle any unexpected expenses, reducing the risk of defaulting on their lease obligations.
While the Fair Market Rent (FMR) for FY 2024 is set at $1200, there is currently no available data on market rates or median home values. However, the absence of these figures does not detract from the ZIP code's suitability as a diversifier. By including properties in ZIP 23025 within a broader portfolio, investors can mitigate risks associated with over-reliance on a single market segment or geographic area.
Furthermore, diversification through this ZIP code can provide exposure to different demographic groups and economic conditions, enhancing overall portfolio resilience. For instance, if other parts of an investor’s portfolio experience downturns due to local economic factors, the steady performance of Section 8 properties in ZIP 23025 can help maintain consistent cash flow.
In conclusion, ZIP 23025 serves as an effective diversifier within a Section 8 portfolio strategy. Its high renter share and median income levels make it a reliable option for landlords seeking to balance risk and reward across their investment properties.
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.