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Norfolk vs Virginia Beach for Rental Property Investing

Side-by-side comparison of Norfolk, VA and Virginia Beach, VA — cap rates, rent, prices, and investment metrics.

Virginia Beach wins 4–3 across key metrics
Norfolk leads on cash flow (3.85% vs 3.73% cap rate) · Virginia Beach leads on population growth
Metric
Norfolk, VA
Virginia Beach, VA
Est. Cap Rate
3.85%
3.73%
Median Home Price
$275,000
$340,000
Median Monthly Rent
$1,380
$1,580
1% Rule
0.50%
0.46%
GRM
16.6x
17.9x
Price / Income
5.2x
4.5x
Property Tax Rate
1.05%
0.79%
Vacancy Rate
5.4%
4.6%
Population Growth
0.3% / yr
0.8% / yr
Annual Appreciation
2.8%
3.2%
Population
244,300
460,490
Median Income
$53,200
$76,400

Norfolk vs Virginia Beach: Which Is Better for Investors?

Cash flow: Norfolk has the edge with an estimated cap rate of 3.85% compared to Virginia Beach's 3.73%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $275,000 in Norfolk vs $340,000 in Virginia Beach, while rents come in at $1,380/mo and $1,580/mo respectively.

Growth & appreciation: Virginia Beach is growing faster at 0.8% annually vs Norfolk's 0.3%. Virginia Beach leads on home value appreciation at 3.2% per year.

Costs & risk: Property taxes are 1.05% in Norfolk vs 0.79% in Virginia Beach. Vacancy rates of 5.4% and 4.6% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Virginia Beach edges out Norfolk on most key metrics. While cap rates are moderate at 3.73%, Virginia Beach's overall profile is stronger. Use our free calculators to model specific deals in Norfolk or Virginia Beach.

Norfolk, VA
3.85% cap rate · $275,000 median · $1,380/mo
Full analysis →
Virginia Beach, VA
3.73% cap rate · $340,000 median · $1,580/mo
Full analysis →
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