Osprey Property Management Blog

Where to Buy in Norfolk: Top Neighborhoods for Real Estate Investors

Written by Osprey Property Management | Jun 13, 2025 6:03:39 PM

Norfolk, Virginia, is quickly becoming one of the top spots for real estate investors on the East Coast. With its strong rental demand, military base presence, and relatively affordable property prices, this coastal city offers excellent opportunities for both first-time and seasoned investors.

If you’re looking to grow your portfolio in a stable yet rising market, investing in Norfolk real estate could be your next smart move.

In this blog, we’ll uncover the best neighborhoods in Norfolk for real estate so you can make an investment that maximizes income. Keep reading for these tips and learn how Opsrey Property Management can help you make the right investment decisions. 

Why Norfolk is a Hot Market for Real Estate Investors

Norfolk checks many boxes when it comes to ideal conditions for property investing. This section will explore the benefits of Norfolk, VA real estate investing right now.

Strong Rental Demand

Norfolk is home to Naval Station Norfolk (the largest naval base in the world), along with several universities and major shipyards. These institutions support a constant flow of new tenants, including:

  • Active-duty military personnel
  • College students and faculty
  • Government contractors
  • Healthcare workers and professionals

This turnover means consistent rental demand across various price points.

Affordable Compared to Other Virginia Cities

While cities like Alexandria, Arlington, and parts of Northern Virginia have sky-high housing costs, Norfolk offers more accessible entry points for investors. Median home prices here are significantly lower, giving you more flexibility when building or diversifying your portfolio. 

This affordability makes it easier for investors to purchase multiple properties, explore different strategies like BRRRR or buy-and-hold, or simply get started with a smaller budget and lower risk.

Favorable Landlord Laws and Coastal Living

Virginia has landlord-friendly laws that allow property owners to manage leases, evictions, and rent collection more efficiently compared to more tenant-friendly states. This legal environment helps protect your investment and streamline operations. 

On top of that, Norfolk’s location on the Chesapeake Bay offers the lifestyle benefits of coastal living, without the premium price tag of oceanfront cities. That combination of policy and appeal makes it a win-win for investors and tenants.

Economic Growth and Revitalization

Downtown revitalization efforts, major infrastructure upgrades, and private development projects are helping reshape Norfolk’s urban landscape. New businesses, restaurants, and residential developments attract renters and homeowners. As the city continues to invest in growth, the local economy becomes stronger, job opportunities increase, and property values trend upward. 

This sets the stage for long-term appreciation and a stable rental market for years.

Key Factors to Consider When Choosing a Neighborhood

Not all Norfolk neighborhoods offer the same ROI or tenant profiles. Here’s what to look at before choosing where to buy:

  • Average Home Price: Neighborhoods vary widely in home prices. Some areas cater to luxury buyers, while others are better suited for budget-conscious investors or BRRRR strategies.
  • Rental Income Potential: Do the average rents support your target return? You want a solid rent-to-price ratio to generate positive cash flow.
  • Tenant Pool and Demand: Some areas attract students and military tenants, while others appeal to families or young professionals. Choose neighborhoods that align with your ideal tenant.
  • Appreciation Trends: It’s not just about cash flow. Some areas are seeing fast appreciation thanks to city investment or increased demand. Long-term investors should factor this in.
  • Amenities and Location: Walkability, public transportation, parks, shops, and proximity to military bases or downtown can all affect tenant satisfaction and your occupancy rates.

Evaluating these factors together will help you choose a neighborhood that aligns with your investment strategy and offers the best chance for long-term success.

Best Neighborhoods to Buy Investment Property in Norfolk

Each of these neighborhoods offers a unique opportunity for real estate investors, depending on your strategy.

Edgewater / Larchmont-Edgewater

Edgewater, often referred to alongside Larchmont, is a picturesque riverside neighborhood filled with tree-lined streets, historic homes, and a welcoming community vibe. Its proximity to Old Dominion University and downtown Norfolk makes it a consistent favorite for residents.

  • Renter Appeal: Popular with families, university staff, and professionals seeking a quiet yet connected neighborhood near the river.
  • Investment Outlook: The median home value is around $500K, with prices rising about 3–4% year-over-year, reflecting steady appreciation in a competitive market. (realtor.com) (Zillow)
  • Property Types: Predominantly single-family homes in Colonial and Craftsman styles, with some larger historic estates and limited multifamily options.

For investors looking for stable returns in a well-established area, Edgewater offers long-term potential and low vacancy risk.

Downtown Norfolk / Freemason

Downtown Norfolk and the neighboring Freemason District offer vibrant, urban living close to the Elizabeth River waterfront. The area continues to benefit from revitalization projects and growing demand for walkable lifestyles.

  • Renter Appeal: Young professionals and students are drawn to its dining, nightlife, and access to jobs and transit.
  • Investment Outlook: Homes in Downtown Norfolk have an average value of about $286,144, with a modest 0.9% year-over-year rise, supported by renewed urban demand. (Zillow)
  • Property Types: Condos, lofts, and mixed-use buildings dominate the rental landscape in this high-density area.

Downtown is ideal for investors who want exposure to city-center appreciation and consistent demand from renters seeking convenience and culture.

Ghent

Ghent is one of Norfolk’s most iconic neighborhoods, known for its historic homes, vibrant arts scene, and European-style walkability. Its proximity to Eastern Virginia Medical School and downtown makes it a top-tier choice for stable tenants.

  • Renter Appeal: Popular with young professionals, hospital staff, and students from nearby EVMS and ODU.
  • Investment Outlook: Ghent’s median home value is around $386,306, with about 2.4% annual growth, showcasing longstanding stability and appreciation in this historic district. (Zillow)
  • Property Types: Single-family homes, duplexes, and early 20th-century condos and apartments.

Ghent is ideal for investors seeking reliable tenants and long-term value in one of the city’s most in-demand areas.

Huntersville

Located just minutes from downtown, Huntersville is a historic neighborhood experiencing quiet revitalization. Its older homes and tree-lined streets offer charm and character for those looking to invest in affordable housing.

  • Renter Appeal: Appeals to a broad tenant base—especially local workforce tenants and residents seeking charm on a budget.
  • Investment Outlook: Homes in Olde Huntersville average around $235,526, with approximately 4.4% year-over-year growth, signaling strong value-add potential. (Zillow)
  • Property Types: Vintage frame homes from the 1890s to the early 20th century, often requiring light to moderate rehab.

Huntersville is a great pick for value-driven investors ready to take advantage of neighborhood transformation.

Park Place / Fairmount Park

These neighboring districts are seeing new life thanks to their affordability and proximity to downtown and Ghent. Park Place, in particular, offers a blend of older charm and community energy, while Fairmount Park features a mix of single-family homes on large lots.

  • Renter Appeal: Appeals to families, first-time renters, and tenants who value character and accessibility.
  • Investment Outlook: Combined median values for these neighborhoods are roughly $287,808, with about 2–3% annual growth, fueled by revitalization and transit proximity. (Zillow)
  • Property Types: Craftsman-style bungalows, 1950s ranches, and period homes in need of modest updating.

These neighborhoods offer strong entry points for investors looking to get in early on Norfolk’s next growth corridor.

Emerging Neighborhoods to Watch in Norfolk

In addition to the more established areas, a few neighborhoods are gaining traction due to city investment and redevelopment projects.

  • Huntersville: Located near downtown and the Tide light rail, this historic neighborhood is seeing infill housing, infrastructure upgrades, and rising home values. 
  • Park Place: Just east of Ghent, Park Place is benefiting from renovation projects and city programs aimed at preserving its historic housing stock. 
  • Lindenwood and Barraud Park: These affordable neighborhoods are getting renewed attention with new construction, park improvements, and proximity to the redeveloping St. Paul’s area.

Investing early in these neighborhoods could offer high appreciation potential, but they also require careful research and strategic timing.

Tips for Real Estate Investors in Norfolk

Before you make a purchase, keep these tips in mind to maximize your investment.

  • Understand Financing Options: Explore conventional loans, DSCR loans, VA loans (if eligible), or local programs for first-time investors. A knowledgeable lender can help you choose the right structure.
  • Partner with a Local Property Manager: Osprey Property Management helps investors like you navigate tenant laws, screen renters, and keep your property running smoothly. Local expertise makes a difference in ROI and peace of mind.
  • Stay Informed About Rental Rules: Short-term rental regulations can change, and some areas may have specific licensing or zoning requirements. Always confirm before listing.
  • Prepare for Coastal Property Maintenance: If you’re investing near the water, plan for salt air exposure, storm prep, and flood insurance. These factors impact your long-term costs and tenant satisfaction.

Taking these steps early can help you avoid costly mistakes and set your Norfolk investment up for long-term success.

How Osprey Helps Investors Succeed in Norfolk

You don’t have to go it alone. Osprey Property Management is here to support investors through every stage of the rental lifecycle. Here are just a few of the responsibilities we can help you with:

  • Acquisition Advice: We help evaluate properties before you buy to make sure they align with your goals.
  • Tenant Placement and Tenant Screening: Our system filters applicants to find qualified, responsible renters.
  • Full-Service Management: From maintenance to rent collection, we handle it all—so you don’t have to.
  • Local Knowledge: Our team knows Norfolk’s neighborhoods, rental trends, and compliance requirements inside and out.

With Osprey on your side, you can invest confidently and grow your portfolio with less stress.

FAQs About Buying Investment Property in Norfolk

Is Norfolk a good place for rental properties?

Yes. Norfolk offers strong rental demand, relatively low home prices, and a variety of tenant demographics, making it a smart choice for investors.

How much do investment properties cost in Norfolk?

Prices vary by neighborhood. You can find starter investment properties in Norfolk from $200K–$250K, with premium areas regularly surpassing $375K–$400K.

What is the average rental yield in Norfolk?

Expect Norfolk rental yields to fall in the 4%–7% range, depending on neighborhood, property condition, and whether you pursue long-term or short-term rentals.

Can I do short-term rentals in Norfolk?

It depends on zoning and local ordinances. Some areas allow short-term rentals with proper registration, while others have restrictions. Check before you invest.

Choose the Right Neighborhood for Your Investment Goals with Osprey Property Management 

No matter your goals, Norfolk offers a diverse range of investment options for savvy real estate buyers. Let Osprey Property Management guide your next step. We’re here to help you evaluate neighborhoods, manage properties, and build lasting rental success.

Contact us today to discuss your goals or explore available investment opportunities.