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 | $1,480 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,320 | $395,754 | 0.59% | F |
| 4BR | $2,730 | $597,319 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 27966 presents a mixed landscape for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 1,540, 25.3% of residents are renters, indicating that while there is a significant rental market, it is not overwhelmingly dominated by renters. The median household income in this area is $78,507, which provides a useful benchmark for assessing the financial capacity of potential tenants.
The market rent in ZIP 27966 is set at $1,417 per month. This figure represents approximately 18.1% of the median household income when considering a standard 30% rule for housing affordability. The Fair Market Rent (FMR) for the area, as determined by HUD for FY 2024, is $1,380. This suggests that the market rent slightly exceeds the FMR, but only marginally so, indicating that rents are fairly aligned with what is considered affordable for the average household.
The comparison between the market rent and FMR is crucial for understanding the dynamics of the rental market and the availability of Section 8 vouchers. In ZIP 27966, landlords can expect a steady demand for Section 8 tenants, given the relatively high percentage of renters and the fact that the market rent is just above the FMR. However, the demand might not be as deep as in areas where the percentage of renters is higher or where the median income is lower.
Tenants in ZIP 27966 who qualify for Section 8 vouchers will likely have an annual income below $31,428 for a single-person household or $35,844 for a two-person household, based on HUD's guidelines. These individuals or families will be seeking affordable housing options that do not exceed their means, making properties priced around the FMR highly attractive.
In summary, ZIP 27966 offers a moderate opportunity for landlords looking to attract Section 8 tenants. While it is not a renter-heavy area with deep voucher demand, the existing rental market and income levels support a reasonable expectation of finding qualified tenants who can benefit from the program. Landlords should prepare for a tenant pool that values affordability and seeks housing options within their budget constraints, typically around $1,380 per month or less.
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.