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 | $1,400 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $202,321 | 0.79% | D |
| 3BR | $2,190 | $318,052 | 0.69% | D |
| 4BR | $2,580 | $384,664 | 0.67% | D |
| 5BR | $2,993 | $481,275 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 23703 in Portsmouth, VA, presents a balanced scenario between yield and stability. With a Fair Market Rent (FMR) of $1,440 for the fiscal year 2024, compared to a market rent of $1,771, landlords can expect a moderate yield from their properties. The median home value of $315,685 suggests that the area is neither extremely expensive nor cheap, providing a middle ground for investment.
In terms of stability, the ZIP code has a significant portion of its residents as renters at 30.1%. This percentage indicates a stable rental market, as a higher proportion of renters usually means consistent demand for rental housing. Additionally, the days on market (DOM) figure stands at 33 days, which is relatively low, suggesting that rental units are occupied promptly once they become available. The average household income of $78,707 supports the idea that tenants can afford the rent, contributing to a stable cash flow.
To further clarify the investment potential, let's consider the yield. The FMR is approximately 81% of the market rent, indicating that landlords can still achieve above-average returns while maintaining affordability for tenants. However, the relatively low renter percentage might suggest that there could be some competition from homeownership opportunities, potentially affecting the stability of the rental market.
Given these factors, ZIP 23703 leans towards being a steady-cashflow zone. While it offers decent yields through rents slightly above the FMR, the strong rental demand and quick turnover of properties indicate a stable environment for landlords and small-portfolio investors. The combination of a substantial renter population and a reasonable median home value supports long-term investment strategies over short-term, high-risk flips.
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.