Section 8 Fair Market Rent (FMR) for ZIP 23609 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 23609, located in Virginia Beach-Norfolk-Newport News County, VA, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1350 per month for fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, meaning it reflects the rental rates unique to this area.

To understand how a voucher works, consider the following: the total rent is split between the tenant and the government. Tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for a household in this area, the tenant would contribute approximately $450 towards the rent. The remainder of the rent, up to the SAFMR limit, is covered by the government. In this case, the government would cover $900 ($1350 - $450).

Additionally, there are utility allowances to factor in. These allowances vary but typically add around $200-$300 to the monthly reimbursement. Therefore, if we take the higher end of the utility allowance range, the total monthly reimbursement could be around $1100-$1200. This amount includes both the rent subsidy and the utility allowance.

Given that the local market rent is currently unknown, landlords should use the SAFMR as a guideline for setting their rents. If you set your rent above $1350, the voucher will still only cover up to that amount. Conversely, if your rent is below $1350, the voucher will cover the difference, ensuring full payment up to the SAFMR limit.

In ZIP 23609, landlords can expect a reimbursement gap or surplus based on the actual market conditions. If the local market rent is significantly lower than $1350, landlords might see a surplus where the voucher covers more than the market rent. However, if the local market rent is higher, landlords will face a gap where they must either accept a lower rent or find alternative tenants who can pay the difference.

Currently, with the SAFMR set at $1350 and the tenant's contribution estimated at $450, the typical reimbursement gap or surplus for a two-bedroom unit would be the difference between these amounts and the actual market rent. Landlords should monitor local rental trends closely to ensure they are pricing their units appropriately relative to the SAFMR and the market.

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.