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 | $1,450 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $222,448 | 0.74% | D |
| 3BR | $2,260 | $354,584 | 0.64% | D |
| 4BR | $2,670 | $442,127 | 0.6% | D |
| 5BR | $3,097 | $543,095 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 23508, located in Norfolk, VA, Norfolk City County, are straightforward when you break them down. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1480. This SAFMR figure is specific to this ZIP code, reflecting the localized rental costs.
Comparatively, the local market rent for a two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), is $1984. This represents the average rent price that tenants might pay out-of-pocket in the current market without a voucher.
A landlord participating in the Section 8 program should understand how the total payment is structured. The voucher payment consists of the tenant's portion plus the utility allowance. Typically, the tenant contributes 30% of their income towards rent. For a two-bedroom apartment with an SAFMR of $1480, if we assume the tenant's contribution is around 30%, it would be approximately $444.
The remaining amount is covered by the housing authority, up to the SAFMR limit. In this case, the housing authority would pay the difference between the tenant's contribution and the SAFMR, which is $1036. However, the actual reimbursement can vary slightly based on the tenant's exact income percentage.
In addition to the base rent, there are utility allowances that can help cover the cost of utilities. These allowances vary but are generally lower than the market rates. For Norfolk, the utility allowance for a two-bedroom unit is typically around $200-$300. This means the landlord could receive an additional $200-$300 to offset utility costs.
To summarize, the typical reimbursement for a two-bedroom apartment in ZIP 23508 under the Section 8 program is around $1236-$1336 ($1036 base rent + $200-$300 utility allowance). Given the local market rent of $1984, this results in a reimbursement gap of about $648-$748 per month. Landlords need to consider this gap when deciding whether to participate in the program.
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.