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 | $1,140 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $241,617 | 0.53% | F |
| 3BR | $1,780 | $363,849 | 0.49% | F |
| 4BR | $2,100 | $505,223 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 23437, which encompasses Suffolk, Virginia, operate under specific parameters that affect both landlords and tenants. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1200. This figure represents the maximum amount that the housing authority will reimburse landlords for rental payments.
In comparison, the local market rent for a similar two-bedroom unit is reported at $1290 according to the Census ACS (American Community Survey). This indicates that landlords might face a slight shortfall when renting to tenants with Section 8 vouchers.
A landlord should understand that the actual payment received from a voucher consists of the tenant's portion plus any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their income towards rent. If we assume an average income level for the area, the tenant's portion would be around $360, based on a hypothetical income of $1200 per month. This leaves the housing authority to cover the remaining $840 of the SAFMR, totaling the $1200.
Utility allowances vary but are generally included in the voucher payment. These allowances can range from $200 to $300 depending on the household size and the specific terms of the voucher. Therefore, the total reimbursement a landlord receives from a voucher could be between $1040 and $1140.
This means that if a landlord rents out a two-bedroom apartment at the local market rate of $1290, they would have a reimbursement gap of $150 to $250. Conversely, if they rent below the market rate but still above the SAFMR, they could see a smaller gap or even a surplus.
To maximize profit while maintaining compliance with Section 8 regulations, landlords should aim to keep their rental costs close to the SAFMR without exceeding it. This strategy minimizes the financial gap between the voucher reimbursement and the local market rent.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.