Location: Louisa County, VA | Metro: Richmond, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 23102 reveals a critical gap between the Fair Market Rent (FMR) set at $1690 for fiscal year 2024 and the actual market rent of $1604 based on the latest Census ACS data. This indicates that the FMR is $86 higher than the current market rent, representing an increase of approximately 5.4%. For landlords and small-portfolio investors, this scenario transforms ZIP 23102 into a yield play, where properties can be rented to voucher tenants at a rate above the market average, thus increasing rental income.
The higher FMR means that landlords who participate in the Section 8 program can receive a payment that exceeds the typical market rent in the area. This financial advantage is significant given the local context: only 6.9% of residents are renters, indicating a low supply of rental properties relative to demand. Additionally, the median home value stands at $548,998, suggesting a relatively affluent neighborhood where owning a home is more common. The median income of $126,635 further supports this, showing that most residents have the financial capability to purchase homes rather than rent.
In such a market, landlords can leverage the Section 8 program to attract tenants who might otherwise struggle to find affordable housing. By renting to voucher holders at the higher FMR, landlords can achieve better yields compared to the open-market rates. This strategy not only benefits the landlord financially but also helps ensure that the property remains occupied, reducing vacancy rates and associated costs.
Data Sources: FMR data from HUD (2027). 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.