Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,770 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 23461 reveals a challenging investment landscape due to limited data points. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, as of FY 2024, is set at $1640 per month. To annualize this figure, we multiply it by 12, resulting in an annual rental income of $19,680.
However, the median home value in ZIP 23461 is not available, which makes it difficult to calculate the implied gross yield based on property value. In the absence of this data, we cannot provide a precise cap-rate calculation. Nonetheless, we can still discuss the implications of the FMR compared to potential market rents.
Given that the market rent is also not available, we must rely on the FMR as a baseline for our analysis. If we assume that the market rent closely aligns with the FMR, the gross yield would be relatively low, reflecting the conservative nature of Section 8 rents. This implies that properties in ZIP 23461 might generate lower returns when compared to other investment opportunities outside the program.
The lack of median home value data further complicates the cap-rate assessment, making it impossible to determine the exact yield percentage. However, the absence of this information does not necessarily indicate a poor investment environment; it simply means that investors must conduct thorough due diligence to understand local property values accurately.
The renter density and Days on Market (DOM) are also not specified, which would typically help in gauging the competition and demand for rental properties. Without these figures, it's challenging to assess the likelihood of maintaining consistent occupancy rates or the ease of renting out properties in this area.
In conclusion, while the Section 8 program in ZIP 23461 offers a stable tenant base with a guaranteed monthly rental income of $1640 for a two-bedroom unit, the overall investment attractiveness remains unclear due to insufficient data on median home values and market conditions. Investors should proceed with caution and seek additional local insights before committing to this market.
Data Sources: FMR data from HUD (2027). 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.