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 | $1,570 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $298,905 | 0.6% | F |
| 3BR | $2,450 | $438,507 | 0.56% | F |
| 4BR | $2,890 | $538,131 | 0.54% | F |
| 5BR | $3,352 | $574,838 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 27958, located in Moyock, North Carolina, presents an interesting scenario when viewed from the perspective of a renter. The median household income in this area is $112,177, which is significantly higher than the national average. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), stands at $2,775 per month. This figure is notably high compared to the Fair Market Rent (FMR) set for the Housing Choice Voucher program, which is $1,650 for the fiscal year 2024.
To put this into context, let's consider the affordability gap. A household earning the median income would have to spend approximately 25% of their monthly income on market-rate rent. In contrast, if they were to use a housing voucher, they would only need to contribute 30% of their income towards rent, which is capped at 30% of the FMR. This means that the voucher holder would pay around $495 per month, leaving the remaining $1,155 to be paid by the voucher program. The difference between the ZORI and the FMR is substantial, indicating a significant gap in what the market demands versus what the government deems affordable.
Moyock has a relatively low percentage of renters at 8.5%, with a total population of 14,408. This suggests a limited pool of potential tenants, which could lead to increased competition among landlords for available renters. Given the high median income and the disparity between market rates and voucher standards, landlords might find themselves in a challenging position. They must decide whether to cater to the market-rate renters willing to pay $2,775 or to accept vouchers that cover up to $1,650 plus the tenant's contribution.
The takeaway for landlords considering voucher versus cash-pay strategies in Moyock is clear. While market-rate rents offer a higher immediate income, the limited number of renters and the high cost of living could make it difficult to fill vacancies. On the other hand, accepting vouchers ensures steady rental income, albeit lower than market rates, but may help maintain occupancy levels in a competitive environment. Landlords should weigh the benefits of long-term stability against short-term financial gains when deciding their strategy.
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.