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 | $1,690 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $274,535 | 0.7% | D |
| 3BR | $2,370 | $343,762 | 0.69% | D |
| 4BR | $2,910 | $461,589 | 0.63% | D |
| 5BR | $3,376 | $595,324 | 0.57% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 23836, located in Chester, Virginia, reveals a balanced market that offers both decent yields and reasonable stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,730, which is slightly below the market rent of $1,786. This indicates a fairly competitive rental environment where landlords can expect to charge close to the FMR without significant discounts.
The median home value in the area stands at $438,223. Given the FMR and market rent figures, this suggests a moderate yield potential. A landlord with a property valued at the median could reasonably anticipate a rental income that covers a substantial portion of their mortgage payments and other expenses, with some profit margin left over.
On the stability axis, the ZIP code shows a mixed profile. Approximately 24.5% of the residents are renters, which is a relatively low percentage. This implies a smaller pool of potential tenants, potentially leading to increased competition among landlords. However, the median household income of $100,921 provides a positive outlook, indicating that tenants in this area have a higher capacity to pay rent consistently.
The lack of data on the average number of days on market (DOM) for rentals makes it difficult to assess the ease of finding tenants. However, the combination of a slightly lower FMR compared to market rent and the presence of a stable income level suggests that while the market might not be highly volatile, it also isn't characterized by extreme stability.
In conclusion, ZIP 23836 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The competitive rental rates and median home values suggest a moderate yield, while the higher median income supports tenant reliability. The lower percentage of renters points to a less dynamic rental market but does not necessarily indicate instability, given the financial strength of the local population.
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.