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 | $1,700 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $252,260 | 0.77% | D |
| 3BR | $2,660 | $374,195 | 0.71% | D |
| 4BR | $3,140 | $462,257 | 0.68% | D |
| 5BR | $3,642 | $565,442 | 0.64% | D |
U.S. Census Bureau data (2024)
Virginia Beach ZIP code 23464 is located in the southern part of the city, specifically encompassing the Princess Anne and Salem areas. This neighborhood is characterized by a mix of established suburban subdivisions and newer developments, offering a quiet, residential atmosphere that appeals to families. While the area is largely bedroom community-oriented, the presence of the Princess Anne Commons shopping district provides local retail and dining convenience, and the nearby Virginia Beach campus of Tidewater Community College serves as a notable local institution for education and workforce development. The region is known for its spread-out layout, relying primarily on car transit, with easy access to major thoroughfares like Princess Anne Road connecting residents to the broader Virginia Beach-Norfolk metro area.
From a financial perspective, 23464 presents a challenging gap between HUD payment standards and current market rates. The HUD SAFMR for a 2-bedroom unit in FY2024 is set at $1,670. However, the current market rent (Zillow ZORI) for a 2-bedroom sits significantly higher at $1,963. This creates a shortfall of $293 per month, meaning a voucher alone may not cover full market rent without a tenant contribution. For investors, the median home value is $409,275, while a median 2-bedroom property sells for $248,873. Properties here move relatively quickly, with a median of 27 days on market, indicating robust demand from traditional buyers and renters alike.
The tenant pool is bolstered by a solid demographic foundation; with a median household income of $92,468, the area is economically stable. The renter share stands at 30.8%, which, while not majority-renter, provides a consistent stream of potential tenants. Families are often drawn to this ZIP for the access to highly-rated public schools within the Virginia Beach City Public Schools system, particularly in the Princess Anne district, and the abundance of parks and community centers. This stability suggests that while voucher demand exists, landlords may also compete with working-class renters who can afford the full $1,963 market rent.
The Section 8 verdict for 23464 leans toward stability and appreciation rather than immediate cash flow. The $293 gap between the 2BR SAFMR and market rent is substantial enough to give pause for investors relying solely on HUD subsidies for coverage. However, the quick turnover (27 DOM) and high median home values indicate strong asset appreciation. The most viable strategy here is accepting vouchers as a supplemental tenant pool while strictly enforcing rent-to-income ratios to bridge the payment gap, capitalizing on the area’s family-friendly reputation to reduce vacancy risk.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.