Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $251,443 | 0.51% | F |
| 2BR | $1,420 | $303,713 | 0.47% | F |
| 3BR | $1,960 | $378,135 | 0.52% | F |
| 4BR | $2,310 | $497,112 | 0.46% | F |
| 5BR | $2,680 | $571,960 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 23061, which covers Gloucester, Virginia, and Gloucester County, can be quite different from the broader market due to the specific SAFMR (Small Area Fair Market Rent) rates established for this region. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1460. This figure is important because it represents the maximum amount that a Section 8 housing voucher will cover for rent in this specific ZIP code.
Local market rents, as reported by the Census ACS, run at $1121 for a two-bedroom unit. This suggests that the SAFMR for ZIP 23061 is higher than the average market rent, which might initially seem favorable for landlords. However, understanding the actual reimbursement requires breaking down the components of the voucher payment.
A Section 8 voucher is designed to cover the difference between what a tenant can afford and the rent of the property. Typically, tenants are expected to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1813 (based on the SAFMR being 30% above the market rate), the tenant would contribute $544 towards the rent. This contribution is calculated as 30% of $1813.
The voucher then covers the remainder of the rent up to the SAFMR limit. In this case, the voucher would pay $916 ($1460 - $544) to the landlord. Additionally, there may be utility allowances, but these are generally fixed and do not exceed $300 per month for most units. Therefore, the total reimbursement a landlord can expect from a voucher tenant in this scenario is $1216 ($916 + $300).
This calculation reveals a key point: even though the SAFMR is higher than the market rent, the actual reimbursement to the landlord is based on the tenant's contribution plus the voucher amount. Given that the market rent is $1121, landlords accepting Section 8 vouchers in ZIP 23061 could see a surplus of $95 per month if they charge the market rate. However, this surplus is contingent upon the landlord agreeing to participate in the program and accepting the voucher amount as payment.
In summary, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 23061, assuming market rent levels, is a surplus of $95 for landlords who accept Section 8 vouchers and charge the local market rate. This makes Section 8 a potentially attractive option for landlords looking to ensure consistent rental income without necessarily having to charge below-market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.