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 | $1,250 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $186,484 | 0.76% | D |
| 3BR | $1,960 | $244,112 | 0.8% | C |
| 4BR | $2,310 | $319,756 | 0.72% | D |
| 5BR | $2,680 | $375,650 | 0.71% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 23661 under the Section 8 program are significant. First, tenant turnover poses a substantial challenge. The market rent stands at $1,548, while the Fair Market Rent (FMR) for FY 2024 is set at $1,310. This discrepancy suggests that landlords might struggle to find tenants willing to pay the lower FMR rate, leading to higher turnover rates and associated costs.
Vacancy exposure is another critical issue. With no available data on days on market (DOM), it's difficult to predict how long properties might remain vacant. This uncertainty can result in significant financial strain, especially if vacancies persist longer than expected.
Deferred maintenance also represents a risk. Given the typical home value of $237,060 and a median income of $65,446, many homeowners might be unable to afford timely repairs, potentially leading to property degradation over time. This could increase maintenance costs for landlords, particularly those new to the Section 8 program.
However, these risks must be weighed against the high renter share in ZIP 23661, which stands at 30.4%. High renter density generally translates into higher demand for rental vouchers, making it easier for landlords to secure tenants who qualify for Section 8 assistance. This robust demand can offset some of the challenges posed by the lower FMR and potential vacancy periods.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 23661 is moderate.
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.