What’s so great about multifamily real estate investments in Hampton Roads?
Everyone’s talking about them.
There's good reasons for this, and we’re going to talk about why apartment buildings in this market make so much sense. But first, let’s think about what this means for you and your plans. Every investor has a different set of goals and a diverse set of properties in their portfolios. If you have never considered multifamily rentals before, this might be the best time to get into that sector of the market. Apartments are in high demand among renters, and if you have a building of your own, you’re looking at multiple income streams, less risk around vacancy, and the potential for short-term and long-term gains.
Multifamily properties like apartment buildings have emerged as a reliable and rewarding option for investors, whether they’re entering the market for the first time, building a portfolio, or trying to diversify. These properties combine consistent cash flow with long-term appreciation, making them a go-to choice for smart investors.
As you continue to evaluate markets and comb through opportunities, Hampton Roads offers a compelling mix of stable growth, affordability, and strong rental demand. Especially when we’re talking about multifamily investing.
Here's why this region should catch your attention as a real estate investor, and what the multifamily mania is all about.
What Makes Hampton Roads an Attractive Market for Multifamily Investors?
Hampton Roads is a real estate market located in southeastern Virginia, which covers a number of different cities and towns. It’s a picturesque coastal area that’s a popular spot for tourists and visitors, and it’s also an established home for many people, including members of the military. We have a lot of bases and installations around, and that contributes to the area’s thriving economic hub. This market can be counted on for a steady population, diverse industries, and a relatively low cost of living. These are exactly the things that make it ideal for multifamily property investments.
Here’s what sets it apart:
A Strong and Steady Economy
Hampton Roads hosts a mix of industries, including military, shipbuilding, healthcare, and tourism. Major employers like the U.S. Navy and Huntington Ingalls Industries provide strong job stability, translating to a reliable pool of renters. These tenants have verifiable income, stable salaries, and a desire to live close to where they work, contributing to a qualified pool of tenants.
Population Growth and Housing Demand
There are a lot of people currently in town and coming to town, and they all need reliable housing. With a growing appeal among service members and their families who are stationed here, young professionals interested in working or going to school, families, and retirees, the demand for rental housing continues to rise. We’re seeing the existing tenants here deciding to rent for longer, and trending towards a tendency to value flexibility and amenities over homeownership.
Affordable Entry Point
Compared to larger metropolitan areas, Hampton Roads offers a lower barrier to entry for multifamily property investors. Apartment buildings are more affordable, both in terms of upfront costs and ongoing expenses. This allows you to potentially generate better returns while avoiding investor saturation often found in pricier markets. You’ll get a lot more for your investment dollars here than you would in Baltimore, Washington, D.C., or other nearby east coast cities.
The Benefits of Investing in Multifamily Properties
So, why are investors so eager to buy apartment buildings and rent out multifamily properties these days?
It’s about economics and opportunity. When you’re trying to understand the appeal of multifamily properties, you have to connect to why they represent such a sound investment choice. Multifamily properties stand out for several reasons:
1. Steady Cash Flow
Apartment buildings typically house multiple rent-paying tenants, creating more consistent and reliable income streams compared to single-family properties. If one unit is vacant, income from the others can cushion the impact. You’re not just collecting one rent check when you have an apartment building; you’re collecting two or more.
2. Leveraging Economies of Scale
With multifamily properties, managing several units in one location reduces operational costs. For instance, a single roof serves multiple renters, making repairs more cost-efficient compared to maintaining individual homes. When you call your pest control company or your landscapers, you’re serving multiple investments and not just one. You’re paying a lot less on a per-unit basis than you would while maintaining a portfolio of single-family homes.
3. Low Vacancy Risks
High demand for rental properties in Hampton Roads ensures that vacancies are rare and usually short-lived. Rentals near military bases or universities tend to see even greater occupancy stability. There’s potentially more turnover with multifamily investments, but still a lower vacancy risk. With inflation still high and rental rates peaking after years of steady inclines, tenants are looking for more affordable options when it comes to housing. Rents are usually more attainable for tenants when they consider an apartment over a house.
4. Tax Benefits
Multifamily property owners can benefit from several tax deductions, including mortgage interest, property depreciation, and maintenance costs, making it easier to boost profitability. These are benefits investors enjoy no matter what kind of rental home they’re investing in, but again - the number of units you’re renting out is higher, which means your tax savings are, too.
5. Appreciation Potential
Over time, well-maintained apartment buildings are likely to appreciate in value. Coupled with strong property management, this increases equity while positioning you for a solid resale when the time comes. It’s an excellent long-term investment for those who are interested in building equity as rent-paying tenants contribute to loans and expenses.
Why Hampton Roads Apartment Buildings Are a Smart Choice for Multifamily Real Estate Investment
Why do you want to join the multifamily mania? Because this is the right market for it.
Hampton Roads’ heavy military presence brings a large population of renters who frequently relocate, especially around cities like Norfolk and Virginia Beach. College towns such as Newport News further add to the demand for rental units. These trends create an active, dependable rental market for multifamily property owners. It’s always going to be moving, and it’s always going to be packed with good tenants looking for homes.
One major advantage of investing in this region is the diversity of tenants, ranging from students and professionals to military families and retirees. We are seeing more remote workers in the area, too, looking for leases for a year or more. This reduces the risk of relying too heavily on one type of renter, increasing stability in your cash flow.
Rents are pretty stable, too. Hampton Roads has experienced steady growth in rental rates over the past decade, without the dramatic volatility seen in many larger cities. For investors, this means excellent potential for long-term income growth.
You can also count on a pro-business environment in this state. Virginia consistently ranks as one of the most business-friendly states in the U.S., providing incentives for development and lower operating costs. This environment creates a sense of strong growth, attracting more residents who eventually boost the rental market.
Tips to Succeed in Hampton Roads Multifamily Investments
We’re here to help you succeed when you’re ready to invest in Hampton Roads multifamily investments. Working with a local property management and real estate expert can make a big difference in choosing the right neighborhood and evaluating the available apartment buildings.
Great property managers make all the difference once you’ve purchased your property and you’re ready to rent out the units. We will handle everything from tenant screening to repairs, ensuring your investment operates smoothly and profitably.
We always recommend that investors get their financing in place early. Research available financing programs and loans that specialize in multifamily properties, including government-backed options like FHA loans. Many investors have found they can take advantage of low-rate FHA loans if they decide to live in one of the units they’re renting out. This may not be your particular path, but it’s an option worth considering.
Hampton Roads offers many opportunities for cost-effective financing due to its affordability and diversity of property types.
When you’re ready to choose a building, we’ll encourage you to consider location and property condition. Proximity to major employers, schools, and transportation hubs often leads to greater rental demand and higher tenant retention rates. Account for planned renovations when assessing a property’s cap rate and ROI potential.
Real estate investment in multifamily properties is an opportunity to create a stable, reliable income stream and long-term wealth. Hampton Roads represents a highly promising market for investors.
We’d like to be part of your professional team when you’re ready to make your next move as a real estate investor. Let’s talk about apartment buildings and see what’s possible for you and your portfolio.
We invite you to contact us at Doud Realty Services, Inc. We provide expert property management in Norfolk, Portsmouth, Hampton Roads, as well as surrounding areas such as Virginia Beach, Suffolk, Chesapeake, and Newport News.