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 | $1,420 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,990 | $296,398 | 0.67% | D |
| 4BR | $2,440 | $386,774 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 23840 reveals a unique balance between yield potential and market stability, making it an intriguing target for both yield-seeking and cash-flow-focused real estate investors.
Starting with yield, the Fair Market Rent (FMR) for the area stands at $1,600 per unit for the fiscal year 2024. This figure significantly outpaces the average market rent of $1,223, indicating a substantial upside for properties that can qualify for Section 8 contracts. The median home value of $292,780 suggests a reasonable entry point for acquiring properties that could be leased under the Section 8 program, thus maximizing rental income.
Moving on to stability, the ZIP code shows a lower percentage of renters at 24.0%. While this is not a high percentage, it does suggest a relatively stable tenant base. However, the lack of data on the number of days on market (DOM) might indicate either a tight local housing market where properties sell quickly, or less activity in the rental sector. The median household income of $82,153 provides a solid economic foundation, ensuring that tenants are likely to have consistent financial resources to meet their lease obligations.
Based on these metrics, ZIP 23840 does not fully align with the characteristics of a high-yield/low-stability flip-style market. Instead, it presents itself more as a steady-cashflow zone, given the stable income levels and reasonable renter percentage. The significant gap between FMR and market rent ($1,600 vs $1,223) offers a compelling opportunity for those willing to navigate the complexities of the Section 8 program, thereby achieving higher yields without compromising on the stability of the investment.
To summarize, the ZIP code offers a moderate level of yield enhancement through Section 8 participation, coupled with a reasonably stable market environment due to the median income levels. It is neither a high-risk, high-reward scenario nor a purely conservative cash-flow play, but rather a balanced option that suits investors looking to capitalize on government-assisted rents while maintaining a degree of market stability.
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.