The Department of Housing and Community Development (DHCD) plays an integral role in Virginia’s response to homelessness. This report reflects DHCD’s ongoing role in funding and supporting homelessness services across Virginia. The information provided presents an objective summary of homelessness trends and the results of related programs across the state. The data presented herein is based on the most recent information available at the time of reporting.

Virginia saw a 1% decrease in the overall number of people experiencing homelessness during the point-in-time (PIT) count (based on preliminary reporting) between January 2024 and January 2025. The U.S. Department of Housing and Urban Development (HUD) will not release the official Point-in-Time count until later in 2025 or early 2026.

Two of the foremost reasons for homelessness are limited affordable housing and insufficient income (National Alliance to End Homelessness, 2025b). Housing wage is the hourly wage needed to afford a Fair Market Rent (FMR) unit (National Low Income Housing Coalition, 2024). FMR, defined by HUD as “the 40th percentile of gross rents [rent/owning costs including utilities] for typical, non-substandard rental units occupied by recent movers in a local housing market," is used to determine thresholds for many housing programs and is representative of roughly the average cost of renting/owning in a particular area (U.S. Department of Housing and Urban Development, 1998). If a household contributes greater than 30% of its income to housing costs (rent/mortgage and utilities), then the household is considered “cost-burdened" and in an unaffordable unit (Housing Forward Virginia, 2025).

Based on the HUD 2025 Fiscal Year (FY) FMRs for Virginia, the average FMR onebedroom unit is $1,151/month and is $1,345/month for a two-bedroom unit (U.S. Department of Housing and Urban Development, 2025). To afford a one-bedroom at FMR, a household would need an annual gross income of at least $46,040 ($3,837/month) and at least $53,794 ($4,483/month) for a two-bedroom at FMR. The minimum wage for Virginia is $12.41/hr. ($2,151/month or $25,812/year), assuming a year-round 40-hour work week (U.S. Department of Labor, 2025). Therefore, the rent affordable at minimum wage is $645/month for a single earner. For a single-person household to afford a one-bedroom unit at FMR, they would need to make $22.13/hour or work 71 hours/week at the current minimum wage (National Low Income Housing Coalition, 2024).

DHCD administers the Commonwealth of Virginia’s homeless assistance resources. These resources include approximately $44 million in state and federal funding including an annual allocation for the Virginia Housing Trust Fund Homeless Reduction Grant.

In fall 2024, DHCD held competitive application for the Housing Trust Fund Homeless Reduction Grant, which is open to nonprofits and units of local government to provide rapid rehousing, permanent supportive housing, and innovative programs for underserved populations.

In spring 2025, DHCD held a renewal application process for the Virginia Homeless Solutions Program (VHSP). The VHSP grant application combined state and federal funding sources (HUD’s Emergency Solutions Grant and Housing Opportunities for Persons with AIDS) along with state general funds for homeless assistance and homeless prevention. To apply and receive these funds, communities were required to complete community-based applications that demonstrate an effective crisis response system designed to make homelessness rare, brief, and one time.