Section 8 Fair Market Rent (FMR) for ZIP 23178 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 23178, which encompasses parts of Virginia Beach, Norfolk, and Newport News in Virginia, can be dissected into several key components. Firstly, it's important to understand that the Section 8 SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1310 for fiscal year 2024. This SAFMR represents the maximum amount that the housing authority will pay towards a tenant’s rent subsidy.

To clarify, the SAFMR is the total amount that the landlord can expect to receive from the housing authority. However, this does not equate to the full rent due from the tenant. Under the Section 8 program, tenants are required to contribute a portion of their income toward rent. Typically, this contribution is 30% of the household's adjusted monthly income. In addition to the base rent, there are also utility allowances that must be considered. These allowances vary but generally cover a reasonable estimate of the tenant's utility costs, ensuring they do not exceed a certain percentage of their income.

Once these factors are taken into account, the actual reimbursement to the landlord is calculated. For example, if a tenant's portion of the rent is $400 and the utility allowance is $150, the landlord would receive $1310 from the housing authority. The tenant would then pay an additional $550 ($400 for rent plus $150 for utilities) directly to the landlord, making the total monthly rent $1860. This calculation assumes the tenant's income is such that their contribution is $400, which is a common figure used for illustrative purposes; actual amounts will depend on the individual tenant's income.

In ZIP 23178, the local market rent data is currently unavailable, which makes direct comparisons challenging. However, based on the SAFMR of $1310, landlords should be aware that the total rent collected from both the housing authority and the tenant will likely exceed the SAFMR, given the tenant's contribution and utility allowances. This can result in a surplus for the landlord compared to the SAFMR alone, but it's critical to note that the market conditions can influence the overall profitability.

Given the SAFMR and assuming a standard tenant contribution and utility allowance, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 23178 would be around $550 per month. This surplus is the difference between the total rent collected and the SAFMR paid by the housing authority, reflecting the additional amount contributed by the tenant.

Data Sources: FMR data from HUD (2027).

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.