Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC 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 | $1,110 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $276,051 | 0.46% | F |
| 3BR | $1,740 | $369,306 | 0.47% | F |
| 4BR | $2,050 | $474,572 | 0.43% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 23072, located in Hayes, VA, within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,260 for the fiscal year 2024 contrasts sharply with the actual market rent, which stands at $1,098 according to Census ACS data. This indicates that landlords might be undercharging based on the HUD's guidelines, potentially missing out on higher rents.
Acquisition of properties in this area is relatively affordable. With a median home value of $363,489, it suggests that the cost of entry into the rental market here is manageable. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) imply a stable market where property values are not fluctuating drastically. This stability can be beneficial for investors looking for long-term, low-risk investments.
Tenant demand in ZIP 23072 is moderate. The total population is 13,328, with a renter share of 27.0%. This means that roughly 3,598 residents are potential renters. While this number is not insignificant, the relatively low renter share compared to other areas could indicate that there is less urgency among tenants to secure housing, leading to a slower turnover rate.
Based on the analysis, investing in ZIP 23072 presents a balanced scenario. The discrepancy between FMR and market rent highlights an opportunity for landlords to either adjust their pricing to align with HUD guidelines or maintain current rates if they prefer to stay competitive. The median home value makes acquisitions feasible without excessive financial strain, and the stable market conditions reduce the risk of significant price fluctuations. However, the moderate tenant demand suggests that landlords should be prepared for a potentially slower leasing process. Overall, while not a high-demand area, ZIP 23072 offers a stable environment for those willing to manage their expectations regarding rental income and property turnover.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.