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 median home value in ZIP 23068 is $385,300. This figure is slightly higher than the national average but lower than some surrounding areas. Given the Fair Market Rent (FMR) for ZIP 23068 in fiscal year 2024 is set at $1200, an investor might question whether this amount can sufficiently cover the mortgage on a property valued at $385,300.
To address this concern, we must consider that the FMR reflects the average rent for a two-bedroom apartment, which may not be representative of all properties in the area. Additionally, mortgage payments depend on various factors including interest rates and loan terms. Assuming a typical mortgage rate, a $1200 monthly rent could indeed cover a significant portion of the mortgage payment, especially if the property is older or has a lower value than the median.
A skeptical investor might also point out that the rental vacancy rate in ZIP 23068 is currently at 0.0%. This suggests a nearly perfect occupancy rate, but it raises questions about the sustainability of this demand. While a 0.0% vacancy rate indicates strong demand, it does not provide information on the number of potential renters or the competition from other types of housing. To fully assess demand, one would need to look at the broader context of population growth and job availability in the area.
Another objection could be whether housing vouchers will keep pace with market rents in ZIP 23068. The data dashboard from HUD.gov provides insights into voucher usage and trends, but it does not specify the exact relationship between voucher amounts and market rents in ZIP 23068. Generally, voucher amounts are adjusted annually based on local market conditions, but there is no guarantee they will always match the FMR exactly.
In conclusion, while the FMR of $1200 can cover a significant part of the mortgage on a property valued at $385,300, the sustainability of renter demand at a 0.0% vacancy rate requires further investigation. As for housing vouchers, they are typically adjusted to reflect market conditions, though the exact alignment with ZIP 23068's FMR remains uncertain without specific data.
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.