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 | $1,350 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $212,063 | 0.72% | D |
| 3BR | $2,110 | $268,432 | 0.79% | D |
| 4BR | $2,490 | $337,543 | 0.74% | D |
| 5BR | $2,888 | $385,119 | 0.75% | D |
U.S. Census Bureau data (2024)
In Norfolk, Virginia, specifically ZIP code 23513, the real estate market presents a nuanced landscape that is crucial for landlords and small-portfolio investors to understand. The median home value stands at $267,920, indicating a relatively affordable housing market compared to national averages. This figure is significant as it suggests that there is a balance between accessibility for buyers and profitability for sellers.
The recent trend shows that only 0.2% of listings have been reduced, which signals a strong seller's market where price adjustments are minimal. Coupled with a median days on market (DOM) of 26 days, this points to an environment where homes are selling quickly without substantial discounts. These metrics imply that landlords and investors can maintain competitive rental rates and potentially increase them slightly without losing tenants to homeownership.
On the rental side, the Fair Market Rent (FMR) for ZIP 23513 in fiscal year 2024 is projected to be $1,360. However, the actual market rent, as measured by Zillow's ZORI index, is currently at $1,627. This discrepancy suggests that the rental market is outpacing the government's subsidized rental support, which could lead to higher demand for rental properties if potential renters find homeownership less attainable due to the gap between FMR and market prices.
For long-term investors, the setup implies a stable appreciation thesis. The low percentage of price reductions and quick sales indicate a resilient market that can withstand economic fluctuations. While rapid appreciation is not likely given the slight difference between the FMR and ZORI, steady growth aligns with historical trends in the region. Investors should focus on maintaining property values through regular upkeep and strategic upgrades to leverage the existing market conditions.
The combination of a modest median home value, low listing reduction rate, and short DOM period, alongside a robust rental market, positions Norfolk as a reliable investment destination. Landlords and small-portfolio investors can expect continued demand for rental properties, supported by the local economy and limited price pressure from the housing market. This stability offers a secure foundation for long-term investments, ensuring consistent cash flows and gradual asset appreciation.
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.