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 23241, located in Richmond County, Virginia, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1460. This figure represents the maximum amount that the housing authority will reimburse landlords for renting out a unit under the Section 8 program.
However, it's important to understand that the total payment to the landlord isn't simply $1460 per month. The actual reimbursement depends on the tenant's portion of the rent and any utility allowances. Tenants are generally required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $15,000 annually, the monthly contribution would be approximately $375. Utility allowances can vary but typically add another $100-$200 to the reimbursement amount.
This means the landlord receives a combination of the tenant's payment plus the housing authority's reimbursement. For instance, if the utility allowance is $150, the total reimbursement would be the tenant's $375 plus the housing authority's portion, which would be calculated as follows:
Therefore, the landlord would receive $1235 in total reimbursement for a two-bedroom apartment in ZIP 23241. Given that the local market rent data is currently unavailable, it's difficult to provide a precise comparison between the SAFMR and the market rates. However, landlords should be aware that the SAFMR is designed to reflect reasonable rental costs within the ZIP code, aiming to cover the majority of rental units without exceeding fair market value.
In conclusion, the typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 23241 would be the difference between the local market rent and the $1460 SAFMR. Landlords must monitor local rental trends to determine if they are receiving less than the market rate or if the SAFMR adequately covers their costs.
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.