Section 8 Fair Market Rent (FMR) for ZIP 23504 - 2027

Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area

Investment Score for ZIP 23504

Monthly Rent (2BR)

$1,410

Median Price (2BR)

$195,475

1% Rule

0.72%

Annual Yield

8.66%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,260
2 Bedrooms	$1,410
3 Bedrooms	$1,940
4 Bedrooms	$2,290
5 Bedrooms	$2,656
6 Bedrooms	$2,975
7 Bedrooms	$3,213
8 Bedrooms	$3,374

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,410	$195,475	0.72%	D
3BR	$1,940	$266,820	0.73%	D
4BR	$2,290	$336,248	0.68%	D
5BR	$2,656	$358,171	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

23,502

Median Household Income

$44,659

Housing Units

9,174

Renter Percentage

61.1%

Occupancy Rate

90.0%

Renter Occupied

5,042

To determine if a landlord should invest in ZIP 23504 (Norfolk, VA) for Section 8 properties, follow this decision tree based on the provided data:

Step 1: Calculate if the Fair Market Rent (FMR) of $1220 can cover the debt service on a property valued at $265,499.

Yes: The FMR of $1220 must be sufficient to cover the mortgage payment and other expenses associated with the property. If the monthly debt service is less than $1220, then this ZIP code is financially viable for Section 8 investments.
No: If the monthly debt service exceeds $1220, then purchasing a property in this ZIP code would not be advisable for Section 8 purposes, as the rental income would not cover the financial obligations.

Step 2: Compare the Zillow Observed Rent Index (ZORI) of $1,535 against the FMR of $1220 to assess the market conditions.

Above FMR: At $1,535, the ZORI is significantly higher than the FMR, indicating that non-Section 8 tenants might pay more. This suggests that landlords could consider diversifying their tenant base beyond just Section 8.
At FMR: If the ZORI were to drop to $1220, it would align with the FMR, making the ZIP code competitive but without additional market premium.
Below FMR: If the ZORI were to fall below $1220, it would indicate a misalignment with the FMR, which is unlikely given the current figure. In such a scenario, landlords would need to reconsider the investment due to lower potential rental income.

Step 3: Evaluate the demand factors. With 61.1% of residents being renters and the Days on Market (DOM) being listed as N/A, the analysis focuses on the rental percentage alone.

It Depends: A high rental rate of 61.1% suggests strong demand for rental properties. However, the lack of data on DOM makes it difficult to assess how quickly properties are rented out. If the DOM is short, it indicates strong demand; if long, it suggests challenges in finding tenants. Given the high rental percentage, landlords should still find sufficient demand, but they must monitor local trends closely.

In conclusion, the viability of purchasing a property in ZIP 23504 for Section 8 investment hinges on the ability of the FMR to cover debt service, the comparison between ZORI and FMR, and the overall demand for rentals. Landlords must ensure that the FMR meets or exceeds their debt service costs and consider diversifying their tenant mix to include non-Section 8 renters, given the higher ZORI. The strong rental percentage supports demand, but landlords should stay informed about local rental trends.

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.