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 | $1,340 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $285,376 | 0.49% | F |
| 2BR | $1,520 | $237,519 | 0.64% | D |
| 3BR | $1,880 | $312,475 | 0.6% | D |
| 4BR | $2,300 | $394,954 | 0.58% | F |
| 5BR | $2,668 | $462,651 | 0.58% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 23231 in Henrico, Virginia, reveals a favorable environment for those willing to navigate the nuances of the HUD Fair Market Rent (FMR) and the broader rental market. For fiscal year 2024, the HUD FMR for ZIP 23231 is set at $1,430. In comparison, the market rent, measured by Zillow's ZORI (Zillow Observed Rental Index), stands at $1,609. This indicates that voucher tenants will cashflow marginally at the HUD FMR rate, as the gap between the two figures is approximately $179 per unit. However, landlords can expect better cashflow outcomes with premium units that exceed the basic FMR threshold.
To further contextualize these figures, consider the median home value in ZIP 23231, which is $332,251. The rent-to-price ratio, calculated by dividing the annual market rent ($19,308) by the median home value, yields a figure of roughly 5.8%. This suggests that rental income represents a significant portion of the total property value, making it an attractive proposition for investors focused on generating passive income through rentals.
The rental market in ZIP 23231 is also characterized by a short median Days on Market (DOM) of 18 days, indicating strong demand for rental properties. Additionally, the low price-cut share of 0.2% implies that landlords rarely need to reduce their asking rents to attract tenants. These factors suggest a robust rental market where demand outstrips supply, supporting the viability of Section 8 investments.
In conclusion, the strongest investor angle in ZIP 23231 is cashflow. With a modest gap between the HUD FMR and market rent, and a healthy rent-to-price ratio, investors can expect steady income from their properties, especially when focusing on higher-end units that command premium rents above the FMR.
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.