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 | $1,570 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,520 | $365,613 | 0.69% | D |
| 4BR | $2,990 | $498,492 | 0.6% | F |
U.S. Census Bureau data (2024)
In ZIP code 23438, potential issues for Section 8 landlords include significant tenant turnover. The market rent stands at $950, whereas the Fair Market Rent (FMR) for FY 2024 is $2060. This disparity suggests that tenants might seek higher-paying jobs or move to areas where their income can cover a larger portion of the rent. Additionally, the vacancy exposure is heightened due to the lack of data on days on market (DOM), indicating an unpredictable time frame for filling vacancies. Given the typical home value of $354,638 and a median income of $93,750, there's a considerable gap between property values and residents' earning capacity, which increases the likelihood of deferred maintenance issues. Landlords must be prepared to invest in property upkeep without relying on tenants to contribute significantly towards these costs.
However, these risks are tempered by the fact that 3.6% of the population are renters, a figure that indicates a relatively high concentration of potential voucher holders. In areas with a dense rental market, the demand for housing assistance often translates into a steady flow of Section 8 tenants, mitigating some of the turnover concerns. Despite the challenges, the high renter density in ZIP 23438 suggests a robust interest in subsidized housing, which can be beneficial for landlords willing to navigate the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.