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 | $1,340 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $250,339 | 0.61% | D |
| 3BR | $2,100 | $302,405 | 0.69% | D |
| 4BR | $2,470 | $411,367 | 0.6% | D |
| 5BR | $2,865 | $524,662 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1430 for ZIP 23664 (Hampton, VA) in fiscal year 2024 can sufficiently cover the mortgage on a $303,259 home. Let's break it down. According to recent mortgage rates, a 30-year fixed mortgage rate in Hampton, VA, stands at 6.250%. This rate would result in a monthly mortgage payment of approximately $1,875 for a $303,259 home, without factoring in property taxes and insurance. Clearly, the FMR does not cover the mortgage alone, indicating that additional income sources or higher rents would be necessary.
The investor may also wonder if the 28.2% renter demand is sufficient. Current data suggests that the rental market in ZIP 23664 is described as "COOL," meaning the demand is not growing as fast as the national average. However, the average rent for a three-bedroom property in the area is $2,136, which is significantly above the FMR. This indicates that while the overall demand might be moderate, there is still a substantial market for rentals, especially for those who can afford higher rents.
Another concern could be whether Section 8 vouchers will keep pace with the $2,085 market rents. The maximum voucher amount for ZIP 23664 is $1,430, which is below the market rent. While this discrepancy exists, it's important to note that voucher holders often face challenges finding suitable housing within their voucher limits. Landlords accepting Section 8 vouchers must ensure that the rent of the house they are interested in falls within the maximum amount covered by the voucher. In cases where the rent exceeds the voucher amount, the tenant must make up the difference, which can vary widely depending on their income and circumstances.
In conclusion, while the FMR of $1430 does not cover the mortgage on a $303,259 home, the higher average market rents indicate potential opportunities for landlords willing to accept slightly higher rents. The 28.2% renter demand, though not robust, still supports a viable rental market. Lastly, Section 8 vouchers are unlikely to cover the full market rent, but landlords can benefit from the stability and security these programs provide, coupled with the willingness of tenants to pay additional rent when necessary.
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.