Section 8 Fair Market Rent (FMR) for ZIP 23235 - 2027

Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area

Investment Score for ZIP 23235

Monthly Rent (2BR)

$1,900

Median Price (2BR)

$296,765

1% Rule

0.64%

Annual Yield

7.68%

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	$1,680
1 Bedroom	$1,750
2 Bedrooms	$1,900
3 Bedrooms	$2,350
4 Bedrooms	$2,880
5 Bedrooms	$3,341
6 Bedrooms	$3,742
7 Bedrooms	$4,041
8 Bedrooms	$4,243

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,900	$296,765	0.64%	D
3BR	$2,350	$384,461	0.61%	D
4BR	$2,880	$463,824	0.62%	D
5BR	$3,341	$586,953	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

33,461

Median Household Income

$96,083

Housing Units

15,018

Renter Percentage

28.2%

Occupancy Rate

94.0%

Renter Occupied

3,985

The ZIP code 23235, located in Richmond, Virginia, represents a vibrant urban neighborhood with a mix of residential and commercial properties. This area is characterized by its accessibility to city amenities and public transportation, making it attractive for both tenants and property owners.

The Fair Market Rent (FMR) for ZIP 23235 in fiscal year 2024 is set at $1,810, which serves as a benchmark for rental pricing in subsidized housing programs.
The Zillow Observed Rent Index (ZORI), reflecting the actual market conditions, stands at $1,965. This indicates that landlords can expect to charge slightly above the FMR for competitive rents.
The median home value in the area is $412,262, suggesting a relatively stable housing market with opportunities for both rental and ownership investments.
Renters make up 28.2% of the population, showing a significant demand for rental properties but also indicating a substantial owner-occupied segment.
The Days on Market (DOM) for rental listings is 8 days, which is quite low, demonstrating strong tenant interest and quick turnover rates.
The median household income in the area is $96,083, providing assurance that there is a financial capacity among residents to support higher rental prices.

Investors considering the Richmond, VA market should note the alignment between FMR and ZORI, signaling a fair rental price environment. The low DOM suggests that properties will be occupied promptly, reducing vacancy periods. With a median income exceeding $96,000, there is a robust economic foundation supporting rental demands. However, the significant owner-occupied share implies that rental properties must offer competitive advantages to attract tenants. Overall, ZIP 23235 presents a favorable investment climate for those looking to enter the real estate market in Richmond.

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.