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 | $1,500 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $256,150 | 0.66% | D |
| 3BR | $2,340 | $400,003 | 0.58% | F |
| 4BR | $2,760 | $545,471 | 0.51% | F |
| 5BR | $3,202 | $635,004 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 23168, which encompasses Toano, VA, and parts of James City County within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, reveals several key points. The HUD Fair Market Rent (FMR) for ZIP 23168 is set at $1,420 for the fiscal year 2024. In comparison, the Census American Community Survey (ACS) reports an average market rent of $1,412. This indicates that voucher tenants can generally cashflow at the HUD FMR, making it a viable option for landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in the area, which stands at $458,171. Using this figure, we can calculate the rent-to-price ratio. A typical rental property would generate approximately $17,000 annually at the market rate ($1,412 per month), resulting in a rent-to-price ratio of about 3.7%. This suggests that the rental income is relatively modest compared to the home values, indicating that the primary attractiveness for investors lies in the steady cash flow provided by Section 8 vouchers rather than rapid appreciation in property values.
The dynamics of the local real estate market also support this conclusion. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's clear that the housing market in ZIP 23168 is stable and not prone to significant fluctuations. The low price-cut share implies that sellers are not frequently forced to reduce their asking prices, which can be reassuring for investors looking for long-term stability.
In summary, the strongest angle for Section 8 investors in ZIP 23168 is the cash flow generated by HUD FMR rates being slightly above the market average. While appreciation may not be as robust due to the high median home values, the consistent rental income and stable market conditions make this area attractive for those seeking reliable returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.