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 | $1,460 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $178,632 | 0.83% | C |
| 2BR | $1,660 | $253,741 | 0.65% | D |
| 3BR | $2,290 | $458,065 | 0.5% | F |
| 4BR | $2,700 | $624,376 | 0.43% | F |
| 5BR | $3,132 | $739,217 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 23507, located in Norfolk, VA, within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the financial metrics available for the area.
The Fair Market Rent (FMR) for ZIP 23507 in fiscal year 2024 is set at $1550, which is slightly above the market rent of $1,519. This means that landlords participating in the Section 8 program can expect to receive rental payments that are higher than the typical market rate, ensuring a stable and predictable cash flow. The positive spread of $31 per month is significant enough to cover any potential maintenance costs and still provide a margin of profit.
In addition, the median home value in ZIP 23507 is $483,540. While this figure is relatively high, it does not directly impact the cash flow from rental properties, especially those that qualify for Section 8 assistance. Landlords should focus on the rental income rather than the property value when considering this ZIP code as part of their investment strategy.
The area also has a low price-cut share of 0.2%, indicating that there is little pressure to reduce rents to attract tenants. Furthermore, the N/A-day Days on Market (DOM) suggests that properties are likely to be occupied quickly once they become available, minimizing vacancy periods and maintaining steady cash flow.
A key factor supporting the cash-flow anchor designation is the median income of $104,295. This indicates that residents in ZIP 23507 have a higher disposable income, reducing the risk of tenant delinquency or eviction. Tenants who can afford higher incomes are typically more reliable and less likely to face financial hardships that could jeopardize their ability to pay rent.
In conclusion, ZIP 23507 offers a robust environment for landlords looking to stabilize their cash flows through the Section 8 program. The combination of slightly higher FMR compared to market rates, low price-cut share, quick occupancy times, and a higher median income makes this ZIP code an excellent choice for a cash-flow anchor in a Section 8 portfolio strategy.
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.