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 | $1,750 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $271,537 | 0.73% | D |
| 3BR | $2,730 | $402,123 | 0.68% | D |
| 4BR | $3,220 | $588,642 | 0.55% | F |
| 5BR | $3,735 | $715,680 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Yorktown, VA (ZIP 23693), might raise several valid concerns regarding the feasibility of investing in properties under Section 8. Let's address these points head-on using the available data.
Will FMR $1760 (zip FY 2024) cover the mortgage on a $533,046 home?
The Fair Market Rent (FMR) for ZIP 23693 in fiscal year 2024 is set at $1760. This amount represents the average monthly rent that a landlord can expect to receive from a Section 8 tenant. To determine if this will cover the mortgage on a home valued at $533,046, we must consider typical mortgage rates and terms. A standard 30-year fixed-rate mortgage at an interest rate of 4.5% would result in a monthly payment of approximately $2,650. The FMR of $1760 falls short of covering this mortgage expense, indicating that additional income sources or lower financing costs would be necessary to make such an investment viable under Section 8.
Is there enough renter demand at 28.7%?
The rental demand in ZIP 23693 is estimated at 28.7%. This percentage suggests that nearly one-third of the housing units are rented out, which is a reasonable level of demand. However, it does not guarantee that all units will be occupied by Section 8 tenants. The actual demand for Section 8 housing needs to be considered separately. Given that the overall rental demand is decent, there could be sufficient interest from low-income renters who qualify for the program. Yet, the data does not specify how many of these renters are seeking Section 8 assistance, so a more detailed local market analysis would be advisable.
Will vouchers keep pace with $2,003 market rents?
The market rent in ZIP 23693 is reported to be $2,003 per month. In comparison, the FMR for Section 8 is significantly lower at $1760. This discrepancy indicates that vouchers may not cover the full cost of market rents, leaving landlords to absorb the difference. While the FMR is designed to reflect the local rental market, it often lags behind actual market conditions. For landlords, this means that while they can participate in the Section 8 program, they should prepare for potential gaps between voucher payments and market rents. It's also important to note that voucher amounts can vary based on family size and unit type, so some larger units may receive higher payments.
In summary, while ZIP 23693 shows a reasonable rental demand and provides insight into the FMR and market rents, the data does not conclusively prove that Section 8 investments will be profitable without careful consideration of financing options and potential gaps in voucher coverage. Landlords and investors should conduct thorough due diligence and possibly seek advice from local real estate experts to ensure that their investment aligns with their financial goals.
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.