The Rubber Hand Illusion is an illusion in which visual cues of stimulation on a fake hand are combined with synchronous tactile cues on a participant’s hand, which can induce a sense of bodily ownership of the fake hand. This technique does not facilitate synchronous movement of the hands, and asynchronous stimulation or movement can break the illusion, thereby limiting potential benefits that bodily ownership may have in practical applications such as telerobotic control. This study aims to quantify to what extent a Virtual Reality headset with hand tracking capabilities can be used to evoke a rubber hand illusion, and to what extent the illusion strength maintains during voluntary hand movement. Twelve subjects were randomly presented with three conditions; the classic Rubber Hand Illusion (RHI), serving as a baseline for comparison, the static Virtual reality Rubber Hand Illusion (VRHI), the virtual reality equivalent of the original experiment, and the moving Virtual reality Rubber Hand Illusion (mVRHI), where participants’ voluntary hand movements were tracked using motion controllers, to generate simultaneous virtual hand motion. Illusion strength was quantified subjectively, by a 27-question questionnaire adapted from literature, and objectively, by measuring proprioceptive drift; the distance between perceived hand location and actual hand location. It was hypothesized that VRHI and mVRHI would increase the strength of the illusion, compared to RHI. A significant increase in proprioceptive drift was found between the RHI and VRHI conditions. Questionnaire scores in the ownership category were significantly higher for VRHI, and the control category showed higher scores for mVRHI. In conclusion, a higher embodiment was achieved during VRHI, but mVRHI did not improve upon VRHI as expected.