Section 8 Fair Market Rent (FMR) for ZIP 23224 - 2027

Investment Score for ZIP 23224

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	$1,310
1 Bedroom	$1,360
2 Bedrooms	$1,490
3 Bedrooms	$1,870
4 Bedrooms	$2,300
5 Bedrooms	$2,668
6 Bedrooms	$2,988
7 Bedrooms	$3,227
8 Bedrooms	$3,388

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,490	$197,479	0.75%	D
3BR	$1,870	$257,457	0.73%	D
4BR	$2,300	$292,793	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23224 (Richmond, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23224 is set by HUD for 2026 and ranges from $1340 for a zero-bedroom unit to $2410 for a four-bedroom unit. For a two-bedroom apartment, which is the most common type of rental unit, the FMR is $1540. This figure represents 36.6% of the median household income in the area, which is $50,475. However, the actual median rent for a two-bedroom apartment, based on Zillow data, is $191,838, which translates to a monthly rent of approximately $1598.65 when considering a typical mortgage payment scenario. The price-to-FMR ratio for a two-bedroom unit is 10.4x, indicating that the actual rent is significantly higher than the FMR. This disparity creates a challenging environment for Section 8 voucher holders. They are constrained by the FMR limits, which may not cover the actual rent in the market. For example, a voucher holder would have to find a landlord willing to accept a rent of $1540 for a two-bedroom unit, whereas the average market rent is $1598.65. This means that landlords must either reduce their rent below market rates or accept a subsidy that covers only part of the total rent. #### Affordability & Renter Profile ZIP code 23224 has a high renter population, with 63.6% of households being renters. The occupancy rate is also quite high at 92.3%, suggesting a tight rental market where demand exceeds supply. Given that the median household income is $50,475, the majority of residents likely struggle with housing affordability. The fact that 36.6% of the median income goes towards a two-bedroom unit indicates that many renters are already spending a significant portion of their earnings on housing. With such a high percentage of renters and limited availability of units, it is likely that the market is competitive and that there is a strong need for affordable housing options. The high occupancy rate suggests that any new rental units entering the market will be quickly absorbed, leading to potential upward pressure on rents if the supply does not keep pace with demand. #### Investor Angle From an investor perspective, the ZIP code 23224 offers a mixed picture. The FMR for a two-bedroom unit is $1540, but the actual median rent is $1598.65. This means that if an investor buys a property at the median price and aims to rent it out at the FMR, they would be operating at a loss unless they can negotiate lower mortgage payments or find ways to reduce expenses. However, the high renter population and occupancy rate indicate a strong demand for rental properties, which could provide opportunities for investors who are willing to work within the constraints of the Section 8 program. The investment grade would depend on the ability to secure tenants and manage costs effectively. Given the high price-to-FMR ratio, investors should carefully consider the financial feasibility of their investments. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on acquiring smaller units, such as zero-bedroom or one-bedroom apartments, which have FMRs of $1340 and $1400 respectively. These units are more likely to be rented out at or near the FMR without requiring significant subsidies. Additionally, the demand for smaller units is likely to be high due to the tight rental market. 2. **Negotiate with Landlords**: Since the actual rents are higher than the FMR, investors should engage in negotiations with landlords to ensure that rents are kept within the FMR limits. This might involve offering incentives to landlords, such as maintenance guarantees or long-term lease agreements, to make the deal more attractive. 3. **Consider Location-Specific Factors**: The success of a Section 8-focused investment in ZIP code 23224 will depend on location-specific factors. Investors should look for areas within the ZIP code that have lower actual rents compared to the FMR. For instance, some neighborhoods might have lower median rents, making them more financially viable for Section 8 tenants. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 23224 is to **Skip** this market. While there is a strong demand for rental properties, the financial constraints imposed by the FMR make it difficult to achieve positive cash flow. Investors should consider other ZIP codes with a better alignment between actual rents and FMRs, or explore alternative investment strategies that do not rely solely on Section 8 vouchers.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.