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)
In ZIP code 23076, there are several factors that could pose challenges for landlords considering Section 8 investments. First, tenant turnover is a significant concern, with the market rent at $1,153 being slightly below the Fair Market Rent (FMR) of $1,200 for FY 2024. This difference can lead to higher turnover rates as tenants might seek properties closer to the FMR, which could result in increased costs for landlords.
Vacancy exposure is another issue, as the Days on Market (DOM) data is currently unavailable. This makes it difficult to predict how long a property might remain vacant between tenancies, potentially leading to lost rental income during these periods. The typical home value in the area is $362,615, while the median income is $106,367. Given the relatively high home values compared to median incomes, there is a risk of deferred maintenance. Landlords must be prepared to invest in regular upkeep to ensure properties meet the necessary standards for Section 8 eligibility.
However, these risks are offset by a substantial 13.7% renter share in the area. High renter density often translates into higher demand for housing vouchers, meaning there could be a steady supply of Section 8 tenants willing to pay the required rent. This makes the ZIP code attractive despite the potential challenges.
The verdict for ZIP code 23076 is moderate risk for a first-time Section 8 landlord. While there are significant challenges to consider, the high demand for rental properties provides a counterbalance that can mitigate some of the financial risks involved.
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.