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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $193,733 | 0.77% | D |
| 3BR | $1,870 | $258,856 | 0.72% | D |
| 4BR | $2,300 | $314,600 | 0.73% | D |
| 5BR | $2,668 | $399,018 | 0.67% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 23805 (Petersburg, VA) as a real estate market for Section 8 landlords and small-portfolio investors hinges on two key metrics: yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 in this area is set at $1,340, which is notably lower than the market rent of $1,515. This suggests that there is potential for higher yields when focusing on Section 8 tenants compared to market-rate rentals.
However, the median home value of $261,109 indicates that this is not a low-value market where flipping might be highly profitable. Instead, the relatively stable rental environment, with 41.1% of residents being renters, provides a solid base of demand for rental properties. Additionally, the 22-day Days on Market (DOM) figure points towards a market where homes are sold fairly quickly, suggesting a level of activity and interest in the housing market.
The average household income of $60,807 in ZIP 23805 supports the notion of stability, as it implies that a significant portion of the population can afford to pay market rents or purchase homes. This income level also suggests that while there is a strong presence of Section 8 eligible tenants, there is a broader economic base that can support various types of rental and ownership structures.
In summary, ZIP 23805 leans more toward a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The lower FMR of $1,340 compared to the market rent of $1,515 does offer some yield advantage, but the substantial median home value of $261,109 and the relatively high percentage of renters at 41.1%, along with the quick sale times indicated by the 22-day DOM, all point to a market that is more about consistent returns than rapid turnover. The average income figure further reinforces the stability of the area, making it an attractive option for those seeking reliable cash flows over speculative gains.
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.