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 |
|---|---|---|---|---|
| 3BR | $1,870 | $282,525 | 0.66% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1290 for ZIP 23850 will adequately cover the mortgage on a $272,952 home. To address this concern, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly payment on a $272,952 home would be approximately $1,460. While this exceeds the FMR, it does not account for potential rental income from other units if the property is multi-family.
The second objection pertains to the low renter demand, indicated by the 3.7% occupancy rate. However, according to recent data, the median home value in ZIP 23850 is around $263,732, suggesting a growing market. Additionally, the average rental price is reported to be $1,900, which is significantly higher than the FMR. This indicates that while demand may be lower than ideal, there is still a viable rental market present.
The final concern revolves around the ability of housing vouchers to keep pace with the market rents. Unfortunately, the data provided does not specify the exact amount of housing vouchers available in ZIP 23850. However, given the average rental price of $1,900, it is evident that voucher amounts may struggle to match these levels. Landlords should prepare for potential gaps between voucher payments and market rents.
In summary, while the FMR may not fully cover the mortgage on a single-family home valued at $272,952, the higher average rental price suggests a robust rental market. The 3.7% occupancy rate points to limited demand but is still within acceptable ranges. Lastly, the lack of specific voucher data means there is uncertainty regarding their adequacy in covering market rents, necessitating careful financial planning.
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.