Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,540 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 23298 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1460. However, the current market rent is listed as N/A, indicating a lack of recent data. Given that we do not have the market rent figure, it's impossible to state the exact dollar gap or calculate the percentage difference. But assuming the FMR is lower than the market rent, which is typical, this creates an interesting scenario for landlords and small-portfolio investors.
If the FMR is indeed below the market rent, landlords accepting Section 8 vouchers will be renting properties at rates below what the open market would command. This can lead to a situation where the landlord's revenue is lower than potential market rents. For instance, if the market rent were hypothetically $1700, the gap would be $240 per month, or about 14%. The cost of housing voucher tenants below open-market rates means landlords must decide whether the stability of Section 8 tenants justifies the reduced rental income. The answer often lies in the broader economic context of the area.
In ZIP 23298, the percentage of renters is N/A, and the median home value is also N/A. With a median income of N/A, the financial landscape suggests that many residents may rely heavily on housing assistance programs such as Section 8. In such a context, landlords might find that the reliability of Section 8 payments, combined with the low turnover rate of these tenants, makes up for the lower rent compared to market rates. It becomes a strategic decision based on the yield play versus the potential risks and rewards of the open market.
To summarize, the analysis of Section 8 in ZIP 23298 must consider the FMR of $1460 against the unknown but likely higher market rent. Landlords should weigh the benefits of stable, long-term tenancy against the opportunity cost of potentially higher rents from non-voucher tenants. The decision should be anchored in the local economic conditions, particularly the reliance on rental assistance among the population.
Data Sources: FMR data from HUD (2027). 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.