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 | $209,350 | 0.73% | D |
| 3BR | $2,100 | $264,081 | 0.8% | D |
| 4BR | $2,470 | $325,930 | 0.76% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 23701 in Portsmouth, VA reveals a market that offers a moderate balance between yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,400, which is notably lower than the market rent of $1,732. This suggests that landlords can potentially achieve higher yields by renting to tenants who qualify for Section 8 vouchers, thus capturing the difference between FMR and market rates.
The median home value in the area is $257,122, which is a significant investment for property owners. However, the median household income is $62,349, indicating that a portion of the population may rely on rental assistance programs like Section 8. With 31.0% of the residents being renters, there is a substantial demand for affordable housing, making the area suitable for those interested in Section 8 properties.
The days on market (DOM) for rental listings is 28 days, which is relatively quick and points towards a stable rental market where vacancies are filled promptly. This quick turnover can be beneficial for landlords, ensuring steady cash flow and minimizing vacancy periods.
To summarize, ZIP 23701 is not a high-yield/low-stability flip-style market. Instead, it falls into a category that offers a steady cash flow with moderate potential for yield enhancement through Section 8 participation. Landlords can expect to see a consistent stream of rental income, with the opportunity to capture additional revenue by renting above the FMR to non-assisted tenants when possible.
A strategic approach would involve targeting a mix of Section 8 and market-rate tenants to leverage both the stability of a higher percentage of renters and the potential for higher rental income. The key figures driving this assessment are the FMR of $1,400, the market rent of $1,732, and the median income of $62,349, alongside the 31.0% renter rate and the 28-day DOM average.
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.