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 | $1,750 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,820 | $279,615 | 0.65% | D |
| 2BR | $1,980 | $341,451 | 0.58% | F |
| 3BR | $2,450 | $475,419 | 0.52% | F |
| 4BR | $3,000 | $642,081 | 0.47% | F |
| 5BR | $3,480 | $1,013,415 | 0.34% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 23220, part of the Richmond, VA HUD Metro FMR Area, is favorable but tight. The Fair Market Rent (FMR) set at $1800 for the fiscal year 2024 slightly exceeds the market rent indicated by ZORI, which stands at $1,732. This suggests that while landlords can aim for the higher FMR, they should be prepared to adjust their rates to match the market conditions if necessary.
Acquisition in this area is reasonably affordable. The median home value is listed at $446,835. The low days on market (DOM) figure of 21 days indicates a quick turnover rate, suggesting strong buyer interest. Additionally, the very low price-cut share of 0.2% further supports the notion that homes are selling close to their initial asking prices, making it an attractive market for acquiring rental properties.
Tenant demand in ZIP 23220 is robust. With a population of 34,671 and a renter share of 66.4%, there is a significant pool of potential tenants. This high percentage of renters indicates a preference for leasing over owning among residents, creating a steady demand for rental properties.
In conclusion, ZIP 23220 presents a viable opportunity for landlords and small-portfolio investors. The rent math is favorable, albeit with a slight margin above market rates. Acquisition costs are reasonable, supported by quick sales and minimal price adjustments. Strong tenant demand is evident from the high renter share and overall population size. These factors collectively suggest a promising investment environment.
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.