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 | $1,700 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $170,235 | 1.04% | B |
| 2BR | $1,930 | $290,798 | 0.66% | D |
| 3BR | $2,380 | $379,088 | 0.63% | D |
| 4BR | $2,920 | $574,256 | 0.51% | F |
| 5BR | $3,387 | $1,000,449 | 0.34% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 23238, Tuckahoe, VA, presents a unique setup that signals significant pricing power for landlords and small-portfolio investors over the next 12-24 months. The median home value stands at $493,074, indicating a relatively stable and affordable market. Additionally, only 0.1% of listings have reduced their prices, which suggests strong seller confidence and limited downward pressure on property values.
A median DOM (Days on Market) of 8 days further underscores the robust demand for properties in this area. This short DOM period reflects a competitive market where homes are selling quickly, often before reaching their full potential exposure to buyers. Combined with the median home value and low price reduction rate, this points to a scenario where landlords can maintain or even slightly increase rental rates without losing tenants.
On the rental side, the Fair Market Rent (FMR) for ZIP 23238 in fiscal year 2024 is set at $1,680, while the actual market rent (ZORI) is $1,756. This slight premium indicates that landlords are able to charge above the government-set FMR, suggesting a market that supports higher rents. However, the gap between FMR and ZORI is modest, implying that there is a limit to how much rents can be raised before becoming uncompetitive.
For long-term hold investors, the appreciation thesis in Tuckahoe, VA, appears to be moderate. The combination of a stable median home value and low price reductions suggests that the area is unlikely to experience rapid appreciation. Instead, the setup implies a steady growth trajectory, supported by consistent demand and manageable rental increases. Investors should expect gradual value increases rather than speculative gains.
In summary, the data on median home value, listing price reductions, and DOM indicate a market where landlords and small-portfolio investors can leverage strong seller confidence and quick sales to maintain or slightly enhance rental rates. The modest gap between FMR and ZORI provides a realistic framework for rental pricing, while the overall stability of the housing market suggests a moderate appreciation outlook for long-term investments.
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.