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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,870 | $341,348 | 0.55% | F |
| 4BR | $2,300 | $418,241 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 23833 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Here are the most common objections and the data to address them.
Objection 1: Will the Fair Market Rent (FMR) of $1,210 for ZIP 23833 in fiscal year 2024 cover the mortgage on a home priced at $331,788?
The FMR of $1,210 must be compared against the typical mortgage payment for a home valued at $331,788. Assuming a 20-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment would be approximately $1,950. Clearly, the FMR does not cover the entire mortgage payment, leaving a shortfall of around $740 per month. This indicates that landlords will need to consider additional sources of income or subsidies to make up the difference.
Objection 2: Is there sufficient renter demand at a 7.3% vacancy rate?
A 7.3% vacancy rate suggests that there is reasonable demand for rental properties in ZIP 23833. However, it's important to note that a lower vacancy rate can indicate a tighter market, which may help landlords maintain higher occupancy rates. While the data shows a moderate level of demand, the exact number of renters interested in Section 8 properties isn't provided, so further investigation into local rental trends and preferences is recommended.
Objection 3: Will vouchers keep pace with market rents of $1,375?
The FMR of $1,210 is below the market rent of $1,375, which means that landlords accepting Section 8 vouchers might face a slight financial disadvantage compared to those renting without vouchers. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts the FMR based on market conditions, but these adjustments may lag behind actual rent increases. Therefore, landlords should expect some degree of fluctuation between voucher payments and market rents.
In conclusion, while ZIP 23833 presents opportunities for landlords and small-portfolio investors, it also poses challenges, particularly in covering mortgage costs and keeping pace with market rents. The data available provides a starting point for analysis, but detailed local market research is essential to make informed investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.