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 | $1,540 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,180 | $343,937 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 23106 is not predominantly a renter-heavy area. With a population of 917, only 4.1% are renters, indicating that homeownership dominates this market. This low percentage of renters suggests that the demand for Section 8 vouchers is limited, making it less favorable for landlords focusing exclusively on tenants utilizing such assistance.
The median household income in this area stands at $59,028. Although the specific market rent for the area is not provided, we can use the Fair Market Rent (FMR) as a benchmark. The FMR for ZIP 23106 is set at $1,680 for FY 2024. Assuming typical rents align closely with the FMR, a landlord in this ZIP would see that rent consumes approximately 28.4% of the median household income ($1,680 / $59,028 * 100).
This percentage indicates that the cost of renting is relatively high compared to the average income, which could pose challenges for potential tenants seeking housing. For context, if we consider that a reasonable rent-to-income ratio is typically around 30%, the tenants in this ZIP might find it tight to manage other expenses while covering their rent.
The expected tenant profile in ZIP 23106 includes individuals who are likely to be employed, given the income level, but may still require financial assistance to afford housing. Landlords should prepare for tenants who are conscious of their budget and may seek properties that offer a balance between affordability and quality. It's also important to note that due to the scarcity of voucher holders, landlords might need to diversify their rental strategies beyond Section 8 to attract a broader range of tenants.
In conclusion, ZIP 23106 offers a niche market for landlords willing to cater to a mix of tenants, including those who might benefit from rental subsidies but are not solely dependent on them. The focus should be on providing value that justifies the rent relative to the income levels of the area.
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.