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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $200,370 | 0.66% | D |
| 3BR | $1,820 | $264,667 | 0.69% | D |
| 4BR | $2,150 | $323,202 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 23707 in Portsmouth, VA, situated within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, serves best as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) set at $1240 for fiscal year 2024 and the market rent of $1481. The difference of $241 per unit represents a reliable cushion that ensures consistent positive cash flow.
The median home value in ZIP 23707 is $249,601, which indicates a relatively stable housing market. Given the low 0.2% price-cut share, landlords can expect to maintain their rental rates without frequent adjustments, further securing steady cash flow. The N/A-day Days on Market (DOM) suggests a robust demand for rental properties, minimizing the risk of vacancies.
The renter share of 44.0% and median income of $48,926 reflect a moderate tenant base. While not indicative of high appreciation potential due to the limited price-cut share and stable DOM, these figures ensure a consistent stream of tenants who can afford the rents set within the FMR guidelines. This makes ZIP 23707 an ideal choice for landlords looking to stabilize their portfolio with properties that generate predictable cash flow.
To summarize, ZIP 23707 stands out as a cash-flow anchor in a Section 8 portfolio strategy. The substantial gap between the FMR and market rent, combined with a low price-cut share and stable DOM, provides landlords with a secure investment that delivers reliable returns over time.
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.