Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
The economics of Section 8 in ZIP code 23232 (Richmond County, Virginia) are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1460. This SAFMR specifically applies to this ZIP code, meaning it reflects the local rental market conditions more accurately than a broader regional average.
To understand what this SAFMR means for landlords, let's break down the components of a voucher payment. The voucher system covers most of the rent but requires the tenant to contribute a portion based on their income. Typically, tenants must pay 30% of their adjusted monthly income towards rent. If we assume an average income level where the tenant pays around $438 (30% of $1460), the remaining amount covered by the voucher would be approximately $1022. However, this does not account for utilities, which have their own allowance.
The utility allowance varies but can add another $100-$200 to the voucher payment. Assuming a conservative utility allowance of $150, the total reimbursement a landlord might receive from a voucher for a two-bedroom unit would be around $1172. This figure includes both the rent subsidy and the utility allowance.
Given that the local market rent for a two-bedroom unit is listed as N/A, it's challenging to provide a precise comparison. However, if we consider the SAFMR as a proxy for the local market rent, then the typical reimbursement gap or surplus can be calculated. With a SAFMR of $1460 and a voucher reimbursement of $1172, there would be a shortfall of $288 per month. This means landlords would need to either reduce their rent to match the reimbursement or accept a lower net income for units rented under the Section 8 program.
In summary, landlords in ZIP 23232 should expect a voucher reimbursement of about $1172 for a two-bedroom unit, leading to a potential monthly shortfall of $288 when compared to the SAFMR of $1460. This economic reality shapes the decision-making process for landlords considering participation in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.