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 | $1,410 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $212,235 | 0.75% | D |
| 3BR | $2,210 | $308,269 | 0.72% | D |
| 4BR | $2,600 | $405,833 | 0.64% | D |
| 5BR | $3,016 | $628,338 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP code 23505, located in Norfolk, VA, falls within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $1410. Comparatively, the average FMR across the entire metro area is higher, indicating that 23505 has lower-than-average rental costs.
The market rent in 23505 is $1,606, which is slightly above the FMR but still relatively affordable within the context of the metro. The median home value in the zip code stands at $324,203, which is notably lower than many other areas within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area. This suggests that 23505 is likely a value pocket for investors looking to acquire properties at a lower cost while still maintaining a decent rental income.
A significant indicator for potential investment opportunities is the renter share, which is 62.8% in 23505. This high percentage of renters, coupled with below-average home values, typically signifies a favorable environment for Section 8 housing. Landlords and small-portfolio investors should take note of this trend, as it can lead to steady demand for rental properties under the Section 8 program.
In summary, ZIP code 23505 presents itself as a value pocket within the broader Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area. It offers lower home values and a high renter share, making it an attractive location for those interested in Section 8 properties. The FMR and market rent figures also support this conclusion, showing that rental prices are manageable while still offering reasonable returns on investment.
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.