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 | $1,240 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $420,689 | 0.46% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 27923 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1380 cover the debt service on a property valued at $406,858?
The FMR of $1380 needs to be sufficient to cover the monthly mortgage payment, property taxes, insurance, and maintenance costs. Assuming a typical financing scenario with a 30-year fixed-rate mortgage at 4%, the monthly principal and interest would be approximately $1960. Adding an estimated $150 for property taxes, $50 for insurance, and $100 for maintenance brings the total monthly debt service to around $2260. Therefore, the FMR of $1380 does not clear the debt service on a property valued at $406,858. The answer is No.
If the FMR were higher, it could potentially cover the debt service. However, based on the current figures, investing in Section 8 properties in this ZIP code is financially unviable.
2) Is the market rent of $1,600 above, at, or below the FMR?
The market rent of $1,600 is above the FMR of $1380. This suggests that there is a potential for higher rental income if you can secure tenants willing to pay market rates. However, Section 8 tenants are limited to the FMR amount, so this point is only relevant if you plan to diversify your tenant mix beyond just Section 8 participants.
3) Are 23.9% of residents renting and the days on the market (DOM) figures enough to ensure demand?
With 23.9% of residents being renters, there is a moderate level of demand for rental properties in ZIP 27923. However, the lack of data regarding days on the market (DOM) makes it difficult to assess how quickly properties are rented out. Without this information, it's impossible to determine if the demand is strong enough to support a Section 8 portfolio.
Given these points, the decision to invest in ZIP 27923 for Section 8 purposes is clear: No. The FMR does not cover the debt service, making it financially unsustainable to rely solely on Section 8 tenants for rental income. While market rents are higher, the primary concern for a Section 8-focused investment is the ability to cover expenses with the FMR alone.
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.