Location: Surry County, 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 | $1,250 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $295,178 | 0.48% | F |
| 3BR | $1,960 | $378,476 | 0.52% | F |
| 4BR | $2,310 | $529,606 | 0.44% | F |
| 5BR | $2,680 | $644,111 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 23430, located in Smithfield, VA, presents a unique balance between yield and stability that can inform investment strategies for both landlords and small-portfolio investors.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,390. This figure exceeds the local market rent of $1,163, indicating a higher potential rental income for properties eligible under the Section 8 program. The median home value of $399,423 suggests that the area is relatively affluent, which could translate into better maintenance of rental properties and potentially lower vacancy rates.
Regarding stability, the ZIP code has a relatively low percentage of renters at 13.5%, which implies a majority of homeowners rather than tenants. While this might suggest a less stable rental market due to the smaller tenant pool, the average household income of $104,065 is quite robust. This higher income level supports the likelihood of timely rent payments and reduces the risk of default, contributing positively to the stability of the rental cash flow.
The absence of data on the number of days on market (DOM) makes it challenging to assess the speed at which properties are rented out, but given the higher FMR compared to market rent, there is likely a demand for affordable housing options, even if the overall rental population is small.
In summary, ZIP 23430 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The higher FMR compared to market rent indicates good potential for rental income, while the strong household income figures support the reliability of tenant payments. However, the relatively low percentage of renters might require careful selection of tenants and properties to ensure a consistent and stable income stream.
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.