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 | $1,490 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $223,567 | 0.76% | D |
| 3BR | $2,330 | $339,006 | 0.69% | D |
| 4BR | $2,750 | $441,160 | 0.62% | D |
| 5BR | $3,190 | $579,690 | 0.55% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 23606, located in Newport News, VA, reveals a rental market where voucher tenants typically cashflow marginally at the Fair Market Rent (FMR) set by HUD for fiscal year 2024. The HUD FMR for the area is $1450, while the actual market rent, measured by Zillow's ZORI index, stands at $1686. This indicates that landlords who accept Section 8 vouchers will likely see a slight shortfall in covering their expenses without premium units or additional income sources.
To further contextualize the rental market, consider the median home value in the area, which is $363,172. Using this figure, we can calculate a rent-to-price ratio. At $1450 per month, the annual rent is $17,400, resulting in a rent-to-price ratio of approximately 4.8%. This ratio suggests that the rental market is slightly undervalued compared to the housing market, making it a potentially attractive option for investors looking to capitalize on rental income.
The dynamics between renting and buying in ZIP 23606 are less relevant due to the absence of data on the median days on market (DOM) and the percentage of homes requiring price cuts. However, given the current trends, the rental market appears to be stable, with minimal need for adjusting prices to attract tenants.
The strongest angle for investors in this market is stability. With a marginal cashflow issue, investors can still expect consistent returns from long-term tenants, especially those utilizing Section 8 vouchers. Stability in the form of steady rental income and low risk of vacancy makes this a solid investment choice for those prioritizing reliability over high returns or rapid 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.