Location: Richmond, VA | Metro: Richmond, VA 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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,870 | $389,320 | 0.48% | F |
| 4BR | $2,300 | $595,082 | 0.39% | F |
| 5BR | $2,668 | $728,974 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 23063 in Richmond, VA, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the Federal Market Rent (FMR) for the area, which is set at $1340 for fiscal year 2024, closely matching the market rent of $1,354. The similarity between these two figures ensures steady and reliable cash flow for landlords participating in the Section 8 program.
A key indicator supporting this strategy is the median home value in ZIP 23063, which stands at $411,283. Given that the FMR is only slightly below the market rent, landlords can expect consistent payments that cover their mortgage expenses and operational costs without significant financial strain. This makes the area an ideal choice for investors looking to stabilize their rental income streams.
While the appreciation potential is limited due to the lack of specific data on price-cut shares and days on market (DOM), the focus should be on the stability provided by the alignment between FMR and market rents. The slight difference of $14 between the FMR and market rent ($1340 vs $1,354) means that landlords will receive nearly market-level rents through the Section 8 program, ensuring they remain competitive in the local housing market.
The 21.0% renter share and median income of $81,553 suggest that there is a moderate demand for rentals, but the income level indicates that tenants may have difficulty affording higher rents outside the Section 8 program. Thus, the cash-flow anchor strategy is particularly advantageous as it leverages the government's assistance to maintain a stable tenant base and predictable income.
In summary, ZIP 23063 serves as a strong cash-flow anchor for Section 8 portfolios, thanks to the close alignment between FMR and market rents, and the moderate demand for rental properties among a population with average incomes. This approach provides landlords with a reliable investment option, minimizing risks associated with fluctuating market conditions and tenant turnover.
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.