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 | $1,350 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $191,207 | 0.72% | D |
| 2BR | $1,530 | $246,951 | 0.62% | D |
| 3BR | $2,110 | $311,552 | 0.68% | D |
| 4BR | $2,490 | $385,019 | 0.65% | D |
| 5BR | $2,888 | $421,344 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 23503, which covers parts of Norfolk, VA, and Norfolk City County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1380. This figure is specific to this ZIP code and reflects the maximum amount that the government will pay towards rent for eligible tenants.
Local market rents, however, are higher, with the ZORI (Zillow Observed Rent Index) indicating an average rent of $1,529 for a two-bedroom unit. This means that landlords can expect to charge slightly above the SAFMR but must understand that the government will only cover up to $1380 of that rent through the voucher program.
A voucher payment is composed of two main parts: the government subsidy and the tenant's contribution. The tenant is required to pay 30% of their adjusted income towards rent, plus any applicable utility allowances. For instance, if a tenant has an adjusted income of $1,000 per month, they would contribute $300 towards rent. If the utility allowance for the property is $100, the total monthly payment to the landlord would be $1380 (the SAFMR) minus the tenant's $300 contribution, plus the $100 utility allowance, totaling $1180.
This calculation shows that landlords in ZIP 23503 who participate in the Section 8 program will receive a reimbursement of $1180 for a two-bedroom apartment, assuming the utility allowance remains consistent at $100. Given that the local market rent is $1,529, this creates a reimbursement gap of $349 per month. This gap represents the difference between the local market rent and the actual amount received from the Section 8 voucher.
To summarize, landlords in ZIP 23503 should expect a reimbursement of $1380 for a two-bedroom apartment under the Section 8 program, with a typical reimbursement gap of $349 when compared to the local market rent of $1,529.
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.