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 | $1,740 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,730 | $476,733 | 0.57% | F |
| 4BR | $3,210 | $651,393 | 0.49% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 23433 on the axes of yield and stability reveals a unique market position. With a Fair Market Rent (FMR) of $1,200 for the fiscal year 2024, this figure contrasts sharply with the average market rent of $3,501. This indicates a potential high-yield opportunity for landlords who can leverage the higher-than-average market rents while benefiting from the subsidized FMR rates under the Section 8 program.
However, the stability aspect of this market is less promising. The percentage of renters at 7.7% suggests a relatively low demand for rental properties compared to owner-occupied homes. Additionally, the median household income of $140,114 is significantly higher than what would typically support a high proportion of renters, which could indicate that renting is not the primary housing choice in this area. The absence of data regarding the number of days on the market (DOM) further complicates the assessment of property turnover and tenant retention rates.
Given these factors, ZIP 23433 leans towards being a high-yield/low-stability market. The substantial gap between the FMR and market rent suggests that landlords can achieve higher returns if they manage to secure tenants willing to pay market rates. However, the low percentage of renters and the high median income imply that the market is not inherently stable for long-term rental investments. Landlords should be prepared for potentially higher vacancy rates and challenges in retaining tenants, particularly those relying solely on Section 8 subsidies.
To summarize, the high-yield potential is driven by the disparity between FMR and market rent, while the low stability is influenced by the limited rental demand and higher median income levels. This makes it more suitable for short-term flips or for landlords who can offer amenities or services that attract tenants willing to pay above the subsidized rate.
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.