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 | $1,320 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,500 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,500 | $260,923 | 0.57% | F |
| 3BR | $1,870 | $352,830 | 0.53% | F |
| 4BR | $2,300 | $437,199 | 0.53% | F |
U.S. Census Bureau data (2024)
The King William area, encapsulated within ZIP code 23086, presents an interesting scenario for both renters and landlords. The median income here stands at $89,583, which places it above the national average. However, when juxtaposed against the market rate rent of $1,406 per month, as reported by the Census Bureau's American Community Survey (ACS), the financial landscape becomes more nuanced.
A household earning the median income would find it challenging to comfortably afford market rate rents without significant financial strain. Typically, housing costs should not exceed 30% of a household's income to be considered affordable. At $1,406, this represents approximately 48% of the median monthly income, indicating a notable affordability gap for many residents.
Comparatively, the Fair Market Rent (FMR) set by HUD for the zip code for fiscal year 2024 is $1,390. This figure is slightly below the market rate but still constitutes a substantial portion of the median income. For those who qualify for housing vouchers, the FMR serves as a benchmark for rental assistance payments, making it easier for lower-income households to secure housing within their budget.
With only 6.9% of the 3,777 population being renters, the competition among landlords is relatively low. This means that landlords have a smaller pool of potential tenants to attract, which can influence pricing strategies and the types of amenities offered to stand out in the local market.
For landlords considering their strategy between voucher and cash-pay tenants, the key takeaway is that while the market rate is higher, the proportion of residents who can afford it is limited. Voucher tenants, supported by the government to pay up to $1,390, provide a more stable and predictable income stream, albeit at a slightly lower rate than the market. Given the affordability gap and the small percentage of renters, landlords might find success in diversifying their tenant base, catering to both those able to pay market rates and those reliant on voucher support. This approach ensures a balanced portfolio that leverages the strengths of each type of tenant while mitigating risks associated with either strategy alone.
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.