Platform · Glossary
FEMA flood zone.
A geographic classification published by FEMA indicating the level of flood risk for a specific area. The zones are codified on Flood Insurance Rate Maps (FIRMs) and used by lenders, insurers, and the federal flood-insurance program.
The zones that matter most for investors
- A zones (A, AE, AH, AO, AR, A99) — Special Flood Hazard Areas with a 1% annual chance of flooding. Federally backed mortgages require flood insurance for properties here.
- V zones (V, VE, VO) — Coastal high-hazard areas subject to wave action and storm surge. Same insurance requirements as A zones, but premiums are typically higher.
- X zones (X, B, C) — Areas of minimal or moderate flood risk. Flood insurance is not required but is often still available.
- D zones — Areas where flood hazard has not yet been studied.
How 3Y surfaces flood risk in a report
When a property's tract intersects an SFHA, 3Y renders a Flood risk callout at the top of the report. The exact copy depends on the combination of flood zone and whether the county is also in hurricane wind-pool territory:
- V Zone (high severity): "High-risk flood area (V Zone). Flood insurance is typically required for financed properties, and wind coverage is strongly recommended due to potential wave and storm-surge exposure."
- A Zone with wind exposure: "Flood-prone area (A Zone) with hurricane wind exposure. Flood insurance is typically required for financed properties, and a separate wind policy is strongly recommended."
- A Zone alone: "Flood-prone area (A Zone). Flood insurance is typically required for most financed properties."
- Wind-pool county, no SFHA: "Property is in a hurricane wind territory. Standard homeowners insurance often excludes wind and hail coverage in this area; a separate wind policy is typically required by lenders."
Each callout links out to FEMA's flood-map portal so the user can verify against the official source.
What this means for the underwriting math
A property in an A or V zone usually requires flood insurance as a condition of any conventional mortgage. Premiums commonly run $1,500–$5,000 per year for residential and meaningfully more on the coast — enough to shift the cap rate by 50–150 basis points on a single-family rental. 3Y models the flood insurance cost into the operating expense projection automatically when the property's tract sits in an SFHA. fema.gov/flood-maps