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 | $1,360 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $363,162 | 0.42% | F |
| 3BR | $1,900 | $360,824 | 0.53% | F |
| 4BR | $2,330 | $470,051 | 0.5% | F |
| 5BR | $2,703 | $579,138 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 23227, located in Henrico, VA, presents a nuanced picture when viewed from a renter’s perspective. The median household income here stands at $69,187, which provides some financial cushion for residents. However, the market rate for rent, measured by the Zillow Observed Rent Index (ZORI), is $1,318. This figure represents the typical cost of renting a home in the area.
In comparison, the Fair Market Rent (FMR) set for the fiscal year 2024 is $1,350. This is the amount that housing authorities use to determine the maximum monthly payment that a Section 8 voucher holder can receive. Given these numbers, it becomes evident that the market rate and the voucher payment standards are closely aligned, differing by only $32.
The population of ZIP 23227 is 24,925, with 45.1% being renters. This significant portion of the population relying on rental housing underscores the importance of affordability in the local real estate market. The close proximity between the ZORI and FMR indicates a narrow affordability gap for those dependent on Section 8 vouchers. For households earning the median income, the market rate of $1,318 would consume a substantial portion of their budget, making it challenging for them to cover other living expenses without assistance.
Landlords in this area face direct competition from both market-rate and subsidized rentals. The similarity between the ZORI and FMR suggests that there is little incentive for voucher holders to seek lower-cost alternatives, as the subsidy nearly matches the market rate. This scenario means that landlords who accept vouchers will likely find a stable tenant base but with limited ability to increase rents beyond the FMR without losing voucher-dependent tenants.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying renters is clear. Accepting vouchers can provide a steady stream of rental income with minimal vacancy periods, though it caps potential rent increases. On the other hand, targeting cash-paying renters might offer higher short-term profits but comes with greater risk due to the financial strain many households face when trying to meet the market rate without assistance. Landlords should weigh the benefits of long-term stability against the possibility of higher immediate returns.
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.