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 | $1,450 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,260 | $434,453 | 0.52% | F |
| 4BR | $2,680 | $484,733 | 0.55% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 27929, located in Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1380 for fiscal year 2024. In comparison, the Census American Community Survey (ACS) indicates that the average market rent in the same area is $1417. This means that landlords accepting Section 8 vouchers will experience marginal cash flow at the FMR rate, as it is slightly below the market rent. However, landlords with premium units can potentially achieve better cash flow.
To further understand the investment potential, consider the median home value in ZIP 27929, which stands at $452,697. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $1417, the annual rental income would be approximately $17,004. Dividing this by the median home value gives us a rent-to-price ratio of about 3.75%. This ratio suggests that rental properties in this area are reasonably priced relative to their market rents, making them attractive for investors looking to generate steady rental income.
The dynamics between renting and buying do not significantly impact the decision-making process for Section 8 investors in this area, as there is no available data on the median Days on Market (DOM) or the percentage of homes that required price cuts. However, the slight gap between the HUD FMR and the market rent implies that while cash flow might be modest, the stability and predictability offered by Section 8 vouchers could outweigh the minor financial shortfall.
The strongest angle for investors in ZIP 27929 is stability. Given the consistent demand for affordable housing and the predictability of Section 8 payments, landlords can expect reliable income streams without the volatility often associated with market-rate rentals.
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.