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 | $1,250 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $279,571 | 0.51% | F |
| 3BR | $1,980 | $361,984 | 0.55% | F |
| 4BR | $2,330 | $393,883 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 27947, located within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, reveals several key points regarding its viability for Section 8 real-estate investment.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 27947 in fiscal year 2024 is set at $1380. However, the market rent data is currently unavailable, which means it's difficult to directly compare the FMR to what tenants might actually pay. This gap in information could be a risk factor for potential investors.
Moving on to the affordability of acquisitions, the median home value in ZIP 27947 stands at $355,094. Without specific data on the number of days on market (DOM) and the percentage of homes that require price cuts to sell, it's challenging to determine how easy or difficult it will be to acquire properties at affordable prices. These metrics would provide crucial insights into the local real estate market dynamics.
The third consideration is the presence of tenant demand. With a total population of 1,028, only 7.0% of residents are renters. This indicates a relatively low demand for rental properties, suggesting that finding tenants who qualify for Section 8 might be challenging given the limited pool of potential renters.
In summary, while the FMR of $1380 provides a benchmark for rental income, the lack of current market rent data introduces uncertainty. The median home value of $355,094 is high, potentially indicating that acquiring properties could be costly, especially without additional context on the DOM and price-cut shares. Furthermore, the low renter share of 7.0% in a small population of 1,028 suggests limited tenant demand. Given these factors, ZIP 27947 appears to present significant challenges for Section 8 investment, particularly due to the low number of potential qualified tenants and the absence of critical market data.
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.