Section 8 Fair Market Rent (FMR) for ZIP 23502 - 2027

Location: Virginia Beach-Norfolk-Newport News, VA | Metro: Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area

Investment Score for ZIP 23502

Monthly Rent (2BR)

$1,550

Median Price (2BR)

$225,261

1% Rule

0.69%

Annual Yield

8.26%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,370
1 Bedroom	$1,380
2 Bedrooms	$1,550
3 Bedrooms	$2,140
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,550	$225,261	0.69%	D
3BR	$2,140	$296,933	0.72%	D
4BR	$2,520	$354,532	0.71%	D
5BR	$2,923	$410,374	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

20,399

Median Household Income

$63,208

Housing Units

8,807

Renter Percentage

55.0%

Occupancy Rate

93.9%

Renter Occupied

4,546

The Section 8 thesis in ZIP code 23502, located in Norfolk, VA, highlights a significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR stands at $1,430, while the market rent, as indicated by ZORI, is $1,921. This discrepancy represents a difference of $491 per month, which translates to approximately 25.5% below the market rate.

Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the cost implications of accepting housing vouchers. The $491 shortfall can be substantial over time and may require adjustments in property management strategies to ensure profitability. This includes optimizing other revenue streams and managing expenses effectively.

Norfolk, VA has a rental market where 55.0% of residents are renters, indicating a strong demand for rental properties. However, the median income of $63,208 suggests that many residents may struggle to afford the median home value of $306,494, making subsidized housing options like Section 8 vouchers particularly attractive.

To illustrate the impact, let's break down the numbers further:

Gap Analysis: At $1,430, the FMR is $491 less than the market rent of $1,921. This means that landlords who accept Section 8 vouchers will need to cover the remaining $491 either through government subsidies or by finding ways to reduce operational costs.
Rental Demand: With 55.0% of the population renting, there is a steady demand for affordable housing units. This percentage indicates that a significant portion of the local market could be interested in Section 8 properties.
Economic Context: The median income of $63,208 places Norfolk, VA in a category where many residents might rely on assistance programs to secure housing. The disparity between income levels and home values ($306,494) underscores the importance of affordable rental options.

In conclusion, the gap between FMR and market rent in ZIP 23502 presents both opportunities and challenges for landlords and investors. While it attracts a large pool of potential tenants due to the high rental demand and economic context, it also requires careful financial planning to manage the cost of housing voucher tenants below open-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.