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 | $2,010 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,450 |
| 5 Bedrooms | $4,002 |
| 6 Bedrooms | $4,482 |
| 7 Bedrooms | $4,841 |
| 8 Bedrooms | $5,083 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $341,900 | 0.67% | D |
| 3BR | $2,820 | $424,194 | 0.66% | D |
| 4BR | $3,450 | $551,246 | 0.63% | D |
| 5BR | $4,002 | $662,376 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 23116, located in Mechanicsville, VA, presents an interesting scenario when viewed from the perspective of a renter. The median household income here stands at $141,711, which places residents in a relatively high-income bracket. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,993. This figure is critical in assessing the financial burden on local renters.
Comparatively, the Fair Market Rent (FMR) for ZIP 23116 in fiscal year 2024 is set at $1,810. This amount represents the maximum payment a Section 8 voucher holder would be able to contribute towards their housing costs. Given that only 9.2% of the 34,188 population are renters, it becomes evident that the rental market is not heavily populated, suggesting a competitive environment for landlords.
The disparity between the market rate ($1,993) and the voucher payment standard ($1,810) highlights a significant affordability gap for voucher holders. This gap means that landlords who wish to attract tenants with Section 8 vouchers must either accept a lower payment or seek additional subsidies to bridge the difference. For those considering cash-paying tenants, the median income suggests that many households could afford the higher market rates without assistance.
Landlords in ZIP 23116 should weigh the benefits and challenges of accepting Section 8 vouchers against the potential for higher rents from cash-paying tenants. While vouchers ensure timely payments, the lower rent amount may impact profitability. Conversely, cash-paying tenants might offer better financial returns but could also lead to increased competition among landlords vying for these higher-income renters.
Takeaway: Landlords in Mechanicsville, VA, have a strategic decision to make regarding their tenant mix. Accepting Section 8 vouchers can stabilize income but requires navigating the subsidy landscape. Opting for cash-paying tenants capitalizes on the area's high median income but demands effective competition strategies in a market where only a fraction of the population seeks rentals.
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.