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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $349,078 | 0.45% | F |
| 4BR | $1,860 | $480,026 | 0.39% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 23690 in Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, reveals a favorable environment for those seeking stable cash flow. The HUD Fair Market Rent (FMR) for ZIP 23690 in fiscal year 2024 is set at $1260 per month. In contrast, the Census ACS reports an average market rent of $947 per month for the same area. This indicates that voucher tenants can easily cash flow at the FMR rate, providing a significant margin above the actual market rents.
To further understand the investment potential, we examine the rent-to-price ratio using the median home value of $382,282. At the market rent of $947, the annualized rent would be approximately $11,364, leading to a rent-to-price ratio of about 0.003%. This ratio suggests that rental income alone is not sufficient to justify the high cost of ownership in this area, making it less attractive for buy-and-rent strategies compared to pure rental investments.
The dynamics between renting and buying in ZIP 23690 are skewed towards higher costs of homeownership, with the median home value significantly outpacing rental rates. However, given the N/A-day median days on market (DOM) and N/A% of homes experiencing price cuts, these metrics do not provide enough insight into the volatility of the housing market. Despite this, the substantial difference between the HUD FMR and the market rent ensures that landlords can maintain positive cash flow even when factoring in typical vacancy and maintenance costs.
The strongest investor angle in ZIP 23690 is cash flow. With the HUD FMR well above the average market rent, landlords can secure steady income from Section 8 tenants without the need for premium units. This makes the area particularly appealing for those looking to generate consistent rental income with minimal risk of vacancy or rent loss.
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.