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 | $1,770 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,790 | $196,272 | 0.91% | C |
| 2BR | $2,010 | $248,904 | 0.81% | C |
| 3BR | $2,770 | $324,882 | 0.85% | C |
| 4BR | $3,270 | $401,684 | 0.81% | C |
| 5BR | $3,793 | $513,846 | 0.74% | D |
U.S. Census Bureau data (2024)
Virginia Beach ZIP code 23462 is largely defined by the Lynnhaven district, a bustling commercial hub anchored by the massive Lynnhaven Mall and a dense cluster of big-box retail along Lynnhaven Parkway. The area features a mix of established 1970s subdivisions and mid-century apartment complexes, attracting a steady flow of military personnel and civilian workers due to its proximity to Naval Air Station Oceana. This accessibility to major defense employment centers provides a stable economic backdrop for rental operations.
Financially, the math presents a tight spread. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $2,050, while the current market rent (Zillow ZORI) sits at $1,912. This creates a rare scenario where the voucher ceiling exceeds market rates by $138, allowing landlords to maximize the allowable subsidy. With a median home value of $325,457 and a median 2BR sale price of $247,201, acquisition costs are relatively contained. Inventory moves quickly, with a median days on market of just 28 days, suggesting high turnover velocity.
Demand appears robust, supported by a renter share of 46.3% and a median household income of $69,040. While this income level suggests many residents can afford market rents, the high proportion of renters indicates strong competition for quality units. The area’s major amenity is the Lynnhaven River, which offers recreational opportunities, and the neighborhood is well-connected by Virginia Beach Boulevard, facilitating transit for commuting workers.
The Section 8 verdict here leans toward stability and appreciation rather than aggressive cashflow. Although the $138 gap between FMR and market rent is positive, the modest $325,457 median home value points toward a market where equity growth may outpace rental yield over time. Investors should view 23462 as a defensive play—leveraging the military proximity for consistent occupancy while banking on long-term asset appreciation in a proven geographic node.
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.