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 | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $147,841 | 0.94% | C |
| 3BR | $1,920 | $190,201 | 1.01% | B |
| 4BR | $2,260 | $234,938 | 0.96% | C |
| 5BR | $2,622 | $292,677 | 0.9% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,200 for ZIP 23607 (Newport News, VA) in fiscal year 2024 will adequately cover the mortgage on a home valued at $181,062. According to recent data, the average rent in 23607 is $1,285, which is slightly higher than the FMR but still might not be sufficient to cover a typical mortgage payment, especially considering property taxes and maintenance costs.
The second objection could be whether there is enough renter demand at 69.5%. Zillow's rental market temperature for 23607 is described as COOL, indicating that demand is below the national average. However, with 96 available rentals, the supply is relatively balanced, suggesting that there is a steady demand for rental properties in this area.
Lastly, an investor might wonder if Housing Choice Vouchers will keep pace with the $1,632 market rents. While the FMR is set at $1,200, it is important to note that voucher amounts can vary based on individual circumstances and the specific needs of the household. Additionally, the rental market in 23607 has seen a decrease in rent by $64 over the past year, which might indicate that the market rents are becoming more aligned with the FMR.
To summarize:
Note that the data does not provide a direct comparison between voucher amounts and market rents, so caution should be exercised when estimating rental income from voucher holders.
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.