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Newport News vs Fredericksburg for Rental Property Investing

Side-by-side comparison of Newport News, VA and Fredericksburg, VA — cap rates, rent, prices, and investment metrics.

Fredericksburg wins 4–3 across key metrics
Newport News leads on cash flow (4.38% vs 3.69% cap rate) · Fredericksburg leads on population growth
Metric
Newport News, VA
Fredericksburg, VA
Est. Cap Rate
4.38%
3.69%
Median Home Price
$235,000
$345,000
Median Monthly Rent
$1,280
$1,580
1% Rule
0.54%
0.46%
GRM
15.3x
18.2x
Price / Income
4.5x
5.9x
Property Tax Rate
0.98%
0.76%
Vacancy Rate
5.8%
4.5%
Population Growth
0.4% / yr
1.5% / yr
Annual Appreciation
2.5%
3.2%
Population
186,000
32,000
Median Income
$52,400
$58,200

Newport News vs Fredericksburg: Which Is Better for Investors?

Cash flow: Newport News has the edge with an estimated cap rate of 4.38% compared to Fredericksburg's 3.69%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $235,000 in Newport News vs $345,000 in Fredericksburg, while rents come in at $1,280/mo and $1,580/mo respectively.

Growth & appreciation: Fredericksburg is growing faster at 1.5% annually vs Newport News's 0.4%. Fredericksburg leads on home value appreciation at 3.2% per year.

Costs & risk: Property taxes are 0.98% in Newport News vs 0.76% in Fredericksburg. Vacancy rates of 5.8% and 4.5% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Fredericksburg edges out Newport News on most key metrics. While cap rates are moderate at 3.69%, Fredericksburg's overall profile is stronger. Use our free calculators to model specific deals in Newport News or Fredericksburg.

Newport News, VA
4.38% cap rate · $235,000 median · $1,280/mo
Full analysis →
Fredericksburg, VA
3.69% cap rate · $345,000 median · $1,580/mo
Full analysis →
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