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 | $1,690 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $264,623 | 0.73% | D |
| 3BR | $2,650 | $391,476 | 0.68% | D |
| 4BR | $3,120 | $542,766 | 0.57% | F |
| 5BR | $3,619 | $653,628 | 0.55% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 23662, located in Poquoson, VA, hinges on analyzing its yield potential and stability metrics. The Fair Market Rent (FMR) for ZIP 23662 in fiscal year 2024 is set at $1,650, while the market rent stands at $2,375. This indicates that properties can be leased at a premium above the FMR, suggesting a relatively high-yield environment.
However, the median home value of $462,728 implies a significant upfront investment for landlords. The rental rate of $2,375 translates into an annual rental income of approximately $28,500, which yields about a 6.16% return on investment based on the median home value. This percentage is modest but acceptable for many investors seeking long-term, stable cash flows rather than quick flips.
Stability is assessed through several indicators, including the percentage of renters, the average number of days on the market (DOM), and the median household income. In ZIP 23662, only 15.4% of residents are renters, indicating a primarily owner-occupied community. This low renter percentage suggests less demand for rental properties and could imply lower stability if tenants struggle to afford rents. However, the median household income of $120,972 provides some assurance that those who do rent can likely afford higher rents.
The absence of data on the average days on the market (DOM) is a critical gap. Typically, a lower DOM would suggest higher stability due to quicker tenant turnover and fewer vacancies. Without this figure, it's challenging to make a definitive assessment on stability.
Based on the available data, ZIP 23662 leans towards being a steady-cashflow zone. While the yield is decent, the high median home value and low percentage of renters indicate a market that is not conducive to high-risk, high-reward flipping strategies. The strong median income supports the ability of residents to pay market rates, which helps maintain a consistent cash flow for landlords.
To conclude, landlords and small-portfolio investors should consider the balance between the relatively high initial investment and the moderate rental yield. The area offers a stable environment for those looking to invest in long-term rental properties, but the potential for rapid returns is limited given the current market conditions.
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.