Section 8 Fair Market Rent (FMR) for ZIP 23111 - 2027
Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area
Investment Score for ZIP 23111
F
Monthly Rent (2BR)
$1,810
Median Price (2BR)
$344,507
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,600 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 2BR |
$1,810 |
$344,507 |
0.53% |
F |
| 3BR |
$2,240 |
$368,626 |
0.61% |
D |
| 4BR |
$2,740 |
$453,657 |
0.6% |
D |
| 5BR |
$3,178 |
$577,575 |
0.55% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$98,969
To determine if you should buy in ZIP code 23111 (Mechanicsville, VA) for Section 8 investment, follow this decision tree:
1) Does FMR $1660 (zip FY 2024) clear debt service on a $394,820 property?
- No: The Fair Market Rent (FMR) of $1660 is insufficient to cover the average debt service on a $394,820 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given that the median home value in Mechanicsville is around $270,000, properties costing $394,820 are likely higher-end and will have correspondingly higher debt service. At this price point, FMR would not be adequate to sustain financial viability.
2) Is market rent $2,182 (ZORI) above, at, or below FMR?
- Above: The Zillow Observed Rent Index (ZORI) for Mechanicsville is $2,182, which is above the FMR of $1660. This indicates that there is potential for market rents to exceed what Section 8 would pay, making non-Section 8 tenants more attractive.
3) Are 23.4% renters + 6-day DOM enough demand?
- It depends: With 23.4% of residents being renters and an average Days on Market (DOM) of 6 days, the rental market shows moderate demand. However, the decision hinges on whether you plan to exclusively target Section 8 tenants or also consider market-rate rentals. If you aim to only attract Section 8 tenants, the low FMR relative to high property costs suggests a challenging path to profitability. If you can diversify your tenant base to include market-rate renters, the higher ZORI could offset the lower FMR, leading to a more sustainable investment. Additionally, consider the availability of vouchers and the local competition for Section 8 properties.
In summary, ZIP 23111 presents a mixed scenario for Section 8 investment. High property values make it difficult for FMR to cover all expenses, but the potential for higher market rents offers some relief. Evaluate your ability to manage a diverse tenant mix and understand the local Section 8 landscape before proceeding.
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.