Section 8 Fair Market Rent (FMR) for ZIP 23234 - 2027

Investment Score for ZIP 23234

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	$1,340
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,520	$203,573	0.75%	D
3BR	$1,880	$299,749	0.63%	D
4BR	$2,300	$364,479	0.63%	D
5BR	$2,668	$434,569	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 23234 (Richmond, VA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 23234 in Richmond, VA, is set by HUD for 2026 as follows: - 0BR: $1340 - 1BR: $1400 - 2BR: $1540 (which represents 27.7% of the median household income) - 3BR: $1950 - 4BR: $2410 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in 23234 is significantly higher. For instance, the Zillow median price for a 2BR unit is $199,004, which translates into a monthly mortgage payment of approximately $1,080 assuming a 30-year fixed-rate mortgage at 5%. When considering property taxes, insurance, and maintenance costs, the total monthly cost for landlords would be higher, likely around $1,200-$1,400. This means that even though the FMR for a 2BR is $1540, the actual rent charged could be much higher, making it difficult for voucher holders to find suitable housing. Given the occupancy rate of 93.7%, there is little room for vacancy, and landlords might prefer higher-paying tenants over those using vouchers. The constraints for voucher holders include limited availability of units within their budget range and competition from non-voucher tenants who can afford higher rents. #### Affordability & Renter Profile ZIP code 23234 has a population of 47,465, with 40.8% of residents being renters. The median household income is $66,619, indicating a middle-class demographic. The affordability of housing is a significant concern given that the FMR for a 2BR unit is only 27.7% of the median income. This suggests that many residents, particularly those relying on Section 8 vouchers, face financial strain when trying to secure housing. The price-to-FMR ratio for a 2BR unit is 10.8x, which is extremely high. This indicates that the market is very tight, with few affordable options available. The high ratio also implies that the rental market is dominated by higher-income earners who can afford the premium rates, leaving less room for lower-income households. #### Investor Angle From an investor perspective, the ZIP code 23234 presents both opportunities and challenges. The FMRs provide a benchmark for what the government will subsidize, but the actual rents charged in the market are much higher. For example, the FMR for a 2BR unit is $1540, while the median home value suggests a much higher rental potential. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a 2BR unit with a mortgage payment of $1,080, property taxes of $200, insurance of $100, and maintenance costs of $100, the total monthly expense would be around $1,480. At the FMR of $1540, the net cash flow would be minimal at $60 per month. This scenario is not ideal for investors seeking strong cash flow. However, the high price-to-FMR ratio suggests that there is potential for higher rents. If an investor can secure a tenant willing to pay the market rate, the cash flow would improve significantly. For instance, a 2BR unit rented at $1,600 (just above the FMR) would yield a net cash flow of $120 per month, which is better but still modest. In terms of investment grade, the tight market and high demand suggest that properties in this ZIP code have good appreciation potential. However, the low cash flow at FMR levels makes it less attractive for purely rental-focused investors. A balanced approach that considers both rental income and potential resale value would be advisable. #### Specific Actionable Insights 1. **Target Higher-Income Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting tenants who can pay above the FMR. A 2BR unit rented at $1,600 would yield a more comfortable cash flow compared to renting strictly at the FMR level. 2. **Consider Property Appreciation**: While cash flow at FMR levels is modest, the strong demand and limited supply suggest that property values in 23234 are likely to appreciate over time. Investors looking to hold properties long-term could benefit from capital gains. 3. **Evaluate Location-Specific Factors**: Within ZIP code 23234, certain neighborhoods may offer better opportunities for cash flow and appreciation. Conducting a detailed neighborhood analysis could help identify areas where rental rates are slightly below the overall median but still above FMRs. #### Bottom Line For Section 8-focused investors, ZIP code 23234 presents a challenging environment due to the high price-to-FMR ratio and limited availability of units within voucher limits. The recommendation is to **Skip** this ZIP code for purely rental investments at FMR levels. However, for investors willing to target higher-income tenants or those interested in long-term appreciation, it could be considered a **Hold** option. The key is to balance the potential for rental income with the possibility of future resale value. In summary, while the market is tight and favorable for property appreciation, the low cash flow at FMR levels makes it less attractive for investors focusing solely on rental income.

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.