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 | $1,260 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $188,632 | 0.76% | D |
| 3BR | $1,970 | $235,179 | 0.84% | C |
| 4BR | $2,320 | $303,636 | 0.76% | D |
U.S. Census Bureau data (2024)
The ZIP code 23702 in Portsmouth, VA, presents a dynamic housing market with clear indicators of how supply and demand interact. The Fair Market Rent (FMR) for ZIP 23702 is set at $1240 for fiscal year 2024, which is notably lower than the actual market rent indicated by Zillow's ZORI metric at $1,628. This suggests that the rental market is experiencing upward pressure, as the actual rents exceed the government-set FMR.
The low price-cut share of 0.2% implies that landlords are generally able to maintain their rental rates without significant concessions, indicating strong demand relative to supply. While the days on market (DOM) is listed as N/A, the median home value of $223,870 provides insight into the overall cost of living in the area, suggesting that homeownership is relatively affordable compared to other markets.
A critical factor influencing the market is the high renter share of 53.8%. This figure is indicative of a substantial portion of the population preferring or being compelled to rent rather than buy. Such a high percentage of renters can create persistent long-term housing pressure, as it signals a continuous demand for rental properties. Landlords and small-portfolio investors should be aware that this trend could mean steady rental income but also requires attention to maintaining competitive rental rates and property conditions to attract tenants.
The market dynamics in ZIP 23702 reveal a scenario where demand likely outpaces supply, particularly in the rental sector. The gap between FMR and ZORI highlights the strength of rental demand, while the low price-cut share underscores the ability of landlords to charge higher rents without reducing prices. The high renter share points to a community that heavily relies on rental housing, which can be both an opportunity and a challenge for those investing in the local real estate market.
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.