Section 8 Fair Market Rent (FMR) for ZIP 23294 - 2027

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

Investment Score for ZIP 23294

Monthly Rent (2BR)

$1,970

Median Price (2BR)

$293,025

1% Rule

0.67%

Annual Yield

8.07%

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	$1,740
1 Bedroom	$1,810
2 Bedrooms	$1,970
3 Bedrooms	$2,430
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

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	$1,970	$293,025	0.67%	D
3BR	$2,430	$358,903	0.68%	D
4BR	$2,980	$411,028	0.73%	D
5BR	$3,457	$479,672	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

20,216

Median Household Income

$64,164

Housing Units

8,920

Renter Percentage

64.3%

Occupancy Rate

94.1%

Renter Occupied

5,392

The ZIP code 23294, located in Henrico, Virginia, is part of a suburban area that has seen steady growth in recent years, making it an attractive location for real estate investment. The area benefits from its proximity to Richmond and offers a mix of residential neighborhoods and commercial developments.

The Fair Market Rent (FMR) for ZIP 23294 is set at $1,770 for fiscal year 2024, indicating the government's benchmark for rental rates in the area.
The actual market rent, as measured by the Zillow Observed Rental Index (ZORI), is slightly lower at $1,668, reflecting the current competitive landscape.
The median home value in the area stands at $360,191, which is higher than the national average but still accessible for many potential buyers.
A significant 64.3% of residents are renters, suggesting a strong demand for rental properties and a favorable environment for landlords.
The median household income in ZIP 23294 is $64,164, providing insight into the economic profile of the area's residents and their ability to pay rent.

Given these metrics, investors in ZIP 23294 can expect a robust rental market driven by a high proportion of renters. While the actual market rent is below the FMR, the difference is minimal, and the median home value suggests a growing property appreciation trend. The median income level supports the current rental rates, ensuring that tenants can afford housing. Overall, the area presents a solid opportunity for both landlords and small-portfolio investors looking to capitalize on the existing demand and steady economic conditions.

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.