Location: Richmond, VA | Metro: Richmond, VA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,890 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,210 for ZIP code 23801 can sufficiently cover the mortgage on a typical home. According to recent housing market data, the median home value in ZIP Code 23801 (Fort Lee, VA) ranges between $225,000 and $354,100. Assuming a standard 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly mortgage payment on a $225,000 home would be approximately $1,060, while for a $354,100 home it would be roughly $1,700. Clearly, the FMR comfortably covers these payments.
The second objection concerns the level of renter demand, which stands at 97.8%. This high occupancy rate suggests that there is strong demand for rental properties in the area. However, it's important to note that while high demand is positive, it does not guarantee profitability without considering the supply of rental properties and the competition from other landlords.
Lastly, an investor might wonder if housing vouchers will keep pace with the market rents, which are currently at $1,879. While voucher amounts can vary widely based on local regulations and availability, the FMR set at $2,210 indicates that the government aims to ensure that vouchers cover a substantial portion of the average market rent. This helps mitigate the risk of relying solely on voucher recipients, but it's crucial to monitor any changes in voucher policies and amounts.
To summarize, the FMR in ZIP code 23801 can indeed cover the mortgage on a typical home, the occupancy rate indicates robust demand, and vouchers are designed to keep pace with market rents, although ongoing monitoring is advised.
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.