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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $239,142 | 0.71% | D |
| 3BR | $2,340 | $352,336 | 0.66% | D |
| 4BR | $2,760 | $488,289 | 0.57% | F |
| 5BR | $3,202 | $602,050 | 0.53% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 23321 (Chesapeake, VA) is marked by a median home value of $398,689. This figure, combined with the observation that only 0.2% of listings have been reduced, suggests a market where sellers maintain significant pricing power. The low percentage of price reductions indicates that homes are selling at or near their listed prices, which is a positive sign for current and potential homeowners looking to capitalize on the stability of the local housing market.
A further indication of strong seller's market is the median days on market (DOM) of 26 days. This short period implies that homes are moving quickly, a trend that could continue or even strengthen over the next 12 to 24 months. Rapid sales often correlate with higher demand, which can sustain or increase property values, particularly if supply remains constrained.
On the rental side, the Federal Market Rent (FMR) for ZIP 23321 in fiscal year 2024 is projected at $1,540, while the current market rent (ZORI) stands at $1,799. This gap suggests that rental properties in Chesapeake are currently priced above government standards, indicating a robust rental market. Landlords and small-portfolio investors can expect steady cash flows from rentals, but should also be prepared for fluctuations in rental demand influenced by broader economic conditions.
For long-term investors considering holding onto properties, the setup in ZIP 23321 supports a realistic appreciation thesis. The combination of stable home values, rapid sales, and a healthy rental market points towards an environment where property appreciation is likely, albeit not guaranteed. Investors should monitor local economic indicators and national trends that could affect the housing market, such as interest rates and employment levels, to make informed decisions about their investments.
In summary, the current data on home values, listing reductions, and rental dynamics in ZIP 23321 suggest a favorable market for those looking to sell or hold properties. The median home value, low rate of price reductions, and quick sales times indicate strong pricing power for sellers. Meanwhile, the rental market provides a solid foundation for cash flow generation, making Chesapeake an attractive area for both immediate and long-term investment strategies.
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.