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 | $207,208 | 0.72% | D |
| 3BR | $1,870 | $283,104 | 0.66% | D |
| 4BR | $2,300 | $354,361 | 0.65% | D |
| 5BR | $2,668 | $457,375 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 23834 is situated in Colonial Heights, Virginia, a city known for its suburban charm and historical significance. The area has a total population of 26,628 residents, with 26.4% being renters. This indicates a community where a significant portion of the populace owns their homes, suggesting a stable and possibly affluent environment. The median household income stands at $84,338, which is notably higher than the national average, pointing towards a well-off demographic. The median home value in the area is $294,208, reflecting the overall financial health and desirability of the location.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 23834 in fiscal year 2024 is set at $1,440, while the market rent, measured by Zillow's Observed Rental Index (ZORI), is slightly lower at $1,436. This near parity between the FMR and the actual market rent suggests that the rental market in Colonial Heights is closely aligned with federal guidelines, making it a predictable and stable investment opportunity for those interested in Section 8 properties.
The practical implications for investors can be summarized as follows: ZIP 23834 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the alignment of FMR and market rent means that there is little risk of vacancy due to the Section 8 program, and the stable demand for rental units ensures steady cash flow. On the other hand, for value-add buyers looking to renovate and improve properties, the affluent nature of the surrounding community and the relatively high median income indicate a potential for higher rents once improvements are made. This makes ZIP 23834 a versatile investment option for various types of real estate investors.
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.