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 | $1,380 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,390 | $144,677 | 0.96% | C |
| 2BR | $1,560 | $185,726 | 0.84% | C |
| 3BR | $2,150 | $253,436 | 0.85% | C |
| 4BR | $2,540 | $304,373 | 0.83% | C |
| 5BR | $2,946 | $342,158 | 0.86% | C |
U.S. Census Bureau data (2024)
The dynamics of the ZIP 23704 market in Portsmouth, VA, reveal a scenario where demand closely follows supply, but with subtle indications that it might be edging ahead. The Fair Market Rent (FMR) for ZIP 23704 stands at $1,330 for fiscal year 2024, while the actual market rent, measured by Zillow's ZORI index, is slightly higher at $1,583. This suggests that the rental market is robust, with rents exceeding the government-set benchmark.
A key indicator of market health is the price-cut share, which is currently at 0.2%. This low figure implies that landlords and property owners are generally not having to lower their asking prices to attract tenants, indicating strong tenant interest and competition for available units. The days on market (DOM) statistic, at 39 days, further supports this view, showing that properties are typically occupied relatively quickly after being listed.
The median home value in ZIP 23704 is $231,633, a figure that reflects the overall affordability of the area. However, the fact that nearly 60% of the population are renters points to significant long-term housing pressure. This high renter share can be attributed to several factors, including the affordability of renting versus buying, and the presence of a large student or military population, both of which tend to prefer renting over purchasing a home.
In conclusion, the market in ZIP 23704 is characterized by a balance between supply and demand, with slight indicators leaning towards demand. The low price-cut share and quick DOM suggest a market where properties are sought after and rented promptly. The substantial renter share highlights ongoing pressure on the rental market, making it a compelling target for landlords and small-portfolio investors looking to capitalize on a steady demand for rental properties.
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.