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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $384,509 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 27956, located within the Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area, highlights several key points. The HUD Fair Market Rent (FMR) for this area is set at $1470 for the fiscal year 2024. However, the market rent data is currently unavailable, which makes it challenging to provide a direct comparison. Based on the available HUD FMR, voucher tenants will generally cashflow at this rate, though the exact margin depends on the specific unit's expenses.
The median home value in this ZIP code is $389,341. To derive the rent-to-price ratio, we can use the HUD FMR as a proxy for rental rates. This yields a ratio of approximately 0.038 (3.8%), indicating that rental income represents a relatively small portion of the total home value. This ratio is important for investors considering the long-term viability of rental properties versus purchasing homes for personal use.
The days on market (DOM) and the percentage of price cuts are also critical indicators of the local real estate market health. Unfortunately, these figures are currently unavailable, but they would be crucial in understanding how quickly properties are selling and whether there is a need to adjust prices to attract buyers. In the absence of these metrics, we must rely on other factors to assess the market dynamics.
Given the data, the strongest investor angle in ZIP 27956 is likely cashflow. With voucher tenants paying at the HUD FMR rate, landlords can expect steady, reliable income. While the appreciation potential may be limited due to the lack of specific market rent data, the stability offered by Section 8 tenants ensures consistent returns. For small-portfolio investors, this makes ZIP 27956 an attractive option for generating predictable rental income.
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.