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 | $1,490 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $391,748 | 0.44% | F |
| 3BR | $2,380 | $569,900 | 0.42% | F |
| 4BR | $2,840 | $801,222 | 0.35% | F |
| 5BR | $3,294 | $1,015,720 | 0.32% | F |
U.S. Census Bureau data (2024)
In ZIP code 23457 of Virginia Beach, VA, there are several potential issues that could impact a Section 8 landlord's investment. First, tenant turnover could be a significant challenge. The market rent stands at $1,110, which is notably lower than the Fair Market Rent (FMR) of $1,840 for fiscal year 2024. This discrepancy suggests that tenants might seek higher-paying opportunities outside of the subsidized housing program, leading to frequent changes in occupancy.
Vacancy exposure is another critical risk factor. The average days on market (DOM) for rental properties in this area is currently not available, which makes it difficult to predict how long a property might remain vacant between tenants. High vacancy rates can lead to financial strain on landlords who rely on consistent rental income.
The deferred-maintenance exposure is also substantial. With a typical home value of $673,403 and a median income of $116,250, many tenants may struggle to contribute to maintenance costs, even if they are required to cover a portion of repairs and upkeep. Landlords must be prepared to invest in regular maintenance to keep their properties up to code and habitable, without relying heavily on tenant contributions.
However, these risks are somewhat mitigated by the high renter density in the area. The renter share is 13.2%, indicating a robust demand for rental properties. In such an environment, the likelihood of finding tenants with Section 8 vouchers is higher, potentially stabilizing the rental income stream despite the challenges mentioned.
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.