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 | $1,420 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $222,684 | 0.72% | D |
| 3BR | $2,220 | $262,754 | 0.84% | C |
| 4BR | $2,620 | $409,061 | 0.64% | D |
U.S. Census Bureau data (2024)
In ZIP 23603, located in Newport News, Virginia, the median household income stands at $88,246 according to recent Census ACS data. However, the average market rent rate of $1,444 per month presents a significant challenge for many renters. This rate is nearly identical to the Fair Market Rent (FMR) standard set for ZIP 23603 in fiscal year 2024, which is $1,490. The close alignment between the market rent and the voucher payment standard suggests that the majority of renters in this area are facing an affordability gap.
The 40.3% of households that rent in ZIP 23603 represent a substantial portion of the local population, totaling around 1,414 households. For these renters, the $1,444 market rent is a considerable expense, especially when considering that it represents approximately 17% of their annual income. Given the tight budget constraints, many renters will likely seek assistance through housing vouchers to make ends meet.
The voucher payment standard of $1,490 aligns closely with the market rate, meaning that landlords can expect to receive rental payments that are reflective of the local market conditions if they choose to accept vouchers. However, the reliance on vouchers also introduces additional administrative complexities and potential delays in the rental process. Landlords must weigh these factors against the stability and reliability of cash-paying tenants who might be less common due to the high cost of living relative to income levels.
The takeaway for landlords is clear: while accepting vouchers ensures a steady stream of rental income at rates comparable to the market, the decision should be made with consideration of the administrative overhead and the competitive landscape. In ZIP 23603, where the demand for affordable housing is high, landlords who strategically balance voucher and cash-paying tenants can optimize their portfolio performance and adapt to the local economic realities.
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.