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 | $1,810 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $296,459 | 0.69% | D |
| 3BR | $2,530 | $440,933 | 0.57% | F |
| 4BR | $3,100 | $593,618 | 0.52% | F |
| 5BR | $3,596 | $831,445 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential risks for Section 8 investments in ZIP code 23233, located in Henrico, Virginia, are significant and must be carefully considered. Firstly, the discrepancy between the market rent at $1,911 and the Fair Market Rent (FMR) of $1,840 for fiscal year 2024 can lead to higher tenant turnover. Tenants might struggle to keep up with the slightly higher market rents, leading to frequent vacancies.
Secondly, the average days on market (DOM) for rental properties in this area is only 10 days. While this indicates a strong rental market, it also exposes landlords to the risk of prolonged vacancy if they cannot quickly find suitable tenants. The rapid turnover rate can result in significant downtime and lost revenue.
Lastly, the deferred maintenance risk is notable. With a typical home value of $534,941 and a median household income of $125,665, residents might prioritize immediate expenses over maintaining their homes. This can translate into higher repair costs and more frequent maintenance requests for landlords.
However, these risks are somewhat mitigated by the high renter share of 34.9%. High renter density typically correlates with higher demand for housing vouchers, which can provide a steady stream of qualified tenants. The presence of a large number of renters also suggests a robust rental market, which can help in filling vacancies faster and reducing the likelihood of prolonged vacancy periods.
In conclusion, the risks associated with Section 8 investments in ZIP code 23233 are moderate. While there are challenges related to tenant turnover and maintenance, the high renter share offers some protection against vacancy and ensures a stable tenant pool.
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.