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 | $1,650 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $243,531 | 0.69% | D |
| 2BR | $1,870 | $346,586 | 0.54% | F |
| 3BR | $2,580 | $609,359 | 0.42% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 23510 (Norfolk, VA) for Section 8 purposes, follow this decision tree:
1) Does FMR $1780 (zip FY 2024) clear debt service on a $329,860 property?
No: The Fair Market Rent (FMR) of $1780 is unlikely to cover the debt service on a property valued at $329,860. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the average FMR, it would be challenging to find a loan structure that allows for these expenses while also generating a profit.
Yes: If you can secure a financing arrangement where the monthly rental income of $1780 covers all debt service obligations, then the answer is yes. However, this scenario is improbable without substantial equity or very low-cost financing.
It Depends: The outcome hinges on the specifics of your financing terms. For example, if you have a low-interest rate mortgage, minimal property taxes, and a well-maintained property, the FMR might suffice. But this is an exception rather than the norm.
2) Is market rent $1,796 (ZORI) above, at, or below FMR?
Below FMR: The ZORI (Zillow's estimate of the average rental price) of $1,796 is slightly below the FMR of $1780. This suggests that the market rent is not significantly higher than what Section 8 tenants can pay, making it less attractive for landlords who seek higher returns from market-rate rentals.
At or Above FMR: Since the ZORI is just below the FMR, it does not offer a substantial premium over Section 8 rates. However, if the landlord has no intention of renting to market-rate tenants, this is not a significant issue.
3) Are 82.5% renters + N/A-day DOM enough demand?
Yes: With 82.5% of the population being renters, there is strong demand for rental properties. The N/A-day DOM (Days on Market) indicates that listings are likely getting rented quickly, which is a positive sign for demand. High renter percentage combined with quick occupancy times suggests a robust tenant pool.
No: If the landlord requires a high level of certainty about rental income and immediate occupancy, the lack of specific DOM data might be concerning. However, the high percentage of renters supports the idea that there will be sufficient demand.
It Depends: The decision here largely depends on the landlord's risk tolerance. While the high renter percentage ensures demand, the absence of DOM data introduces some uncertainty about how quickly units can be filled. Landlords comfortable with Section 8's stability but willing to wait for tenants might still find this area viable.
In summary, ZIP 23510 presents a mixed picture for Section 8 investment. The FMR is unlikely to cover debt service on a $329,860 property under typical financing conditions, and market rents are slightly lower than FMR. However, the high renter percentage indicates strong demand, which could be appealing for those focused on steady, long-term tenancy.
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.