Housing Matters: Breaking Down Affordable Housing Buzzwords

A random sample of residents who participated in the 2025 Resident Survey ranked housing affordability as the second most significant issue they think Virginia Beach will face over the next three years. 

Creating affordable housing or providing assistance programs to reduce housing costs are tools for addressing this issue. So many terms and phrases used to describe affordable housing — from public and subsidized housing to Section 8 and workforce housing — can lead to confusion about what it is, who it serves and how the City is meeting the need.

To build clear understanding, let’s break down key concepts and types of affordable housing in Virginia Beach. 

What is affordable housing? 

At its core, housing is generally considered affordable when a household does not spend more than 30% of its gross (pre-tax) income on total housing costs. For homeowners, total housing costs consist of mortgage payments, property taxes, insurance, utilities and homeowner and condominium association dues. Renters would combine monthly rent and utility payments to determine their housing costs.

Home repairs and property maintenance are not included in total housing costs. When households spend more than 30% of their income on housing, they are considered housing cost-burdened.  

“Affordable housing” is a broad, umbrella term that describes a range of housing options and can be broken down by the type of programs and tools to minimize the affordability gap for cost-burdened households. 

Subsidized Housing 

Housing is subsidized when assistance is provided to make renting or buying a home more affordable. Subsidies are typically provided through federal, state or local government programs, but can also be through private programs. Housing subsidies include rental assistance vouchers, down payment assistance and grants to help developers purchase land and build affordable housing. 

Rental Assistance Vouchers 
The most common housing subsidy is provided through the federally funded Housing Choice Voucher (HCV) program — formerly known as Section 8. In Virginia Beach, Housing & Neighborhood Preservation (HNP) administers the program to help more than 2,000 households with extremely low income live in decent, safe and affordable housing owned by private landlords. Eligible program participants receive a voucher to cover all or a portion of the rent, depending on their income and level of need. This subsidy is paid directly to the landlord. 

Several other voucher programs are available to help different types of households, especially those from vulnerable populations, who have significant difficulty affording housing on their own. They include youth aging out of foster care, seniors with low income, individuals with developmental disabilities and those transitioning from homelessness to permanent housing. Since these programs target specific populations, HNP coordinates with its Homeless Services division and the Department of Human Services to receive referrals, which means households cannot apply directly for assistance. 

Project-Based Vouchers (PBVs) are a type of rental subsidy that stays with designated units within a development. Only households who live in the PBV-supported units receive the assistance. If they move out, the subsidy stays with the unit for the next eligible tenant. This is different from the HCV program, where the subsidy moves with the participant, which they can use at any qualifying property they choose.  

Pictured: Renaissance Apartments in Virginia Beach is a mixed-income community that provides 192 units of affordable housing and 48 market rate housing units. Ten units are designated for families with disabilities and supported by project-based vouchers to make them affordable to families with very low incomes. The vouchers also helped the developer obtain financing to build the community. Renaissance Apartments made use of land that was owned by the Virginia Beach City Public Schools. The City also contributed federal funds toward development costs.  

Public Housing 
Public housing is type of subsidized housing that is owned and managed by the government or a public housing authority (PHA). Did you know there is no PHA in Virginia Beach? While various assistance programs, such as those mentioned above, are subsidized housing opportunities, the City doesn't own, operate or manage housing. This means there is no public housing in Virginia Beach.  

Developer Subsidies 
Affordable housing developers must be able to bridge the gap between rising land and construction costs and being able to offer units for lower rent or home prices to see a return on their investment. 

Developer subsidies, which include federal grants, land donations, tax credits and density bonuses, can be used to help offset development costs and encourage the creation of new affordable housing. 

For example, the City’s Attainable Workforce Housing Performance (AWHP) Grant Program promotes the development of affordable, multi-family rental housing by helping to fill funding gaps. Annual grants are provided to developers based on a percentage of the incremental real estate taxes generated by their approved development. The incremental real estate tax is the difference between the taxes generated before and after the development is completed.

The program is self-sustaining and performance-based, because the annual grants are created by the real estate tax revenue generated by the development itself. The grants are awarded after the development is completed and if all criteria of the grant agreement have been met, including occupancy and rent restrictions.  

Since 2000, the City has also invested more than $15 million in federal and local funding to help create 1,280 affordable rental housing units and rehabilitate 413. 

Naturally Occurring Affordable Housing 

Other types of housing units are affordable without the help of subsidies. These are known as Naturally Occurring Affordable Housing (NOAH) and are typically older properties that rent or sell at or below market rate.  

In Virginia Beach, there are about 31,550 NOAH units. These units are market-rate multi-family rental apartments that are affordable for households at or below 120% of the Area Median Income (AMI). About 60% of these units are affordable for households at or below 80% of the AMI. 

Since land and construction costs are rising, preserving the availability of NOAH units is critical to provide affordable options for moderate- and lower-income households. 

Workforce Housing 

Workforce housing, or now sometimes referred to as attainable housing, is a category of affordable housing that describes who it serves. This housing can be rental or for-sale units and are priced to be affordable for middle-income households — many who are teachers, firefighters, police officers, nurses and tourism/hospitality employees. Oftentimes, subsidy programs are used to create workforce housing opportunities. 

Why Understanding These Terms Matters 

A one-size-fits-all approach isn’t the solution to addressing housing affordability in Virginia Beach or in any community. It includes a variety of housing types and strategies designed to meet the diverse needs of individuals and families across income levels. Informed community conversations start with a clear understanding of affordable housing and can help residents connect to the right resources. 

Stay Connected 

• Subscribe to the Housing Matters e-newsletter: Get news and updates on affordable housing developments, related resources and programs offered by the City and in the community, feature stories, HNP events and more. 
• Become a housing partner: Opportunities are available for landlords, developers, nonprofits and contractors. 
• Be informed and raise awareness: Email HousingMatters@VBgov.com to invite an HNP representative to attend or present at your organizational meeting or event. 

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City Council approved the development of an education campaign on affordable housing, which was recommended in the 2024 Housing Study report. Housing Matters is the City’s educational and outreach initiative led by Virginia Beach Housing & Neighborhood Preservation that aims to increase residents’ understanding of affordable housing and the need in Virginia Beach.