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 | $1,440 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $290,562 | 0.56% | F |
| 3BR | $2,250 | $328,283 | 0.69% | D |
| 4BR | $2,650 | $399,953 | 0.66% | D |
| 5BR | $3,074 | $537,918 | 0.57% | F |
U.S. Census Bureau data (2024)
1400 is the Fair Market Rent (FMR) set for ZIP 23518 in Norfolk, VA for fiscal year 2024, indicating the maximum amount a landlord can charge for a Section 8 voucher holder. 1957 is the Zillow Observed Rent Index (ZORI), showing the average market rent in the area, which is significantly higher than the FMR. 335808 is the median home value in the region, reflecting a substantial investment opportunity for those looking to purchase property. 41.0% is the percentage of residents who are renters, suggesting a robust demand for rental properties in Norfolk. 77594 is the median income level, which is important for understanding the economic profile of potential tenants. 32 days is the typical time on the market before a property sells, highlighting the efficiency of the local real estate market. 0.2% is the share of homes that experience price cuts, demonstrating the stability and strength of property values in the area.
In ZIP 23518, the disparity between the $1400 FMR and the $1957 ZORI indicates that landlords participating in the Section 8 program could potentially face a lower rental income compared to the market rate. However, the high 41.0% renter share suggests strong demand for affordable housing, making Section 8 properties attractive to a significant portion of the population. The median income of $77594 supports the ability of residents to afford rent, but it also implies that many might need assistance through programs like Section 8. With a quick 32-day DOM and a minimal 0.2% price-cut share, the real estate market in Norfolk appears to be performing well, offering opportunities for both purchasing and renting out properties.
The verdict for Section 8 in ZIP 23518 is that while there are financial considerations due to the lower FMR compared to market rents, the high renter share and stable property values make it a viable option for landlords and small-portfolio investors seeking to serve a critical segment of the Norfolk housing market.
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.