Cap rates 5.2–6.0% · Median price $295,000 · Median rent $1,500/mo · Population 245K
Norfolk is the world's largest naval base, creating an exceptionally stable military tenant pool with BAH (Basic Allowance for Housing) guaranteed income. Strong LTR fundamentals with low vacancy.
Here's what the numbers look like on a typical Norfolk rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $295,000 | $295,000 |
| Down Payment (20%) | $59,000 | $59,000 |
| Monthly Rent | $1,350 | $1,500 |
| Monthly Mortgage | $1,650 | $1,650 |
| Monthly OpEx (est 35%) | $472 | $525 |
| Est. Monthly Cash Flow | $-773/mo | $-675/mo |
| Cap Rate | 3.6% | 4.0% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Check local STR regulations carefully before investing. Some {name} neighborhoods have restrictions on short-term rentals.
DSCR Loans: Most Norfolk properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.