Section 8 Fair Market Rent (FMR) for ZIP 23529 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 23529 (Virginia Beach-Norfolk-Newport News County, VA) are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1370 for the fiscal year 2024. This SAFMR figure is specific to this ZIP code, meaning it reflects the rental rates deemed fair for this particular area.

To understand how this impacts landlords, let's break down the components of a Section 8 voucher payment. A voucher holder typically pays 30% of their adjusted income toward rent. For instance, if a tenant has an adjusted income of $1000 per month, they would contribute $300 towards the rent. The remainder, up to the SAFMR limit, is covered by the housing authority. In our example, this would mean the housing authority would pay the landlord $1070 ($1370 - $300).

In addition to the base rent, there are utility allowances. These vary but generally provide additional funds to cover electricity, gas, water, and sewer costs. If the utility allowance is $200, then the total reimbursement to the landlord could be $1270 ($1070 + $200).

Note that the local market rent for the area is currently not available, which means landlords cannot directly compare the SAFMR to the average rent charged in the area. However, the SAFMR does act as a ceiling for what the housing authority will reimburse for rent and utilities combined.

To summarize, if you are a landlord in ZIP 23529 with a two-bedroom unit, you can expect a maximum reimbursement of $1370 for rent alone. With utility allowances, the total reimbursement can reach up to $1570. Given the SAFMR of $1370, landlords should ensure their rents do not exceed this amount to avoid a reimbursement gap. If your market rent exceeds the SAFMR, you will face a shortfall. Conversely, if your rent is below the SAFMR, you may have a surplus, though this surplus is limited by the total reimbursement cap.

In ZIP 23529, the typical reimbursement gap or surplus for a two-bedroom apartment is thus dependent on the actual rent charged compared to the $1370 SAFMR. Landlords must carefully manage their rents to align with these figures to maximize their financial benefit from Section 8 tenants.

Data Sources: FMR data from HUD (2027).

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.