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 | $196,478 | 0.76% | D |
| 3BR | $1,870 | $277,174 | 0.67% | D |
| 4BR | $2,300 | $340,771 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 23872, encompassing the McKenney, VA neighborhood, is characterized by a relatively small population of 2,571 residents, with only 14.1% being renters. The area boasts a median household income of $75,913, indicating a middle-class community where homeownership is prevalent. The median home value in this neighborhood stands at $266,057, reflecting a modest but stable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 23872 in fiscal year 2024 is set at $1,270. This figure contrasts sharply with the market rent reported by the Census Bureau's American Community Survey (ACS), which is $960. This discrepancy highlights a potential opportunity for landlords and investors who can leverage the higher FMR rates offered by the government to attract tenants eligible for Section 8 housing assistance.
Given these conditions, ZIP 23872 would suit both hands-off voucher operators and hands-on value-add buyers. For those seeking a low-maintenance investment strategy, the existing demand for affordable housing coupled with the Section 8 program's financial support ensures steady cash flow. On the other hand, value-add buyers could focus on improving properties to meet higher FMR standards, thereby increasing rental income and property values. Both approaches benefit from the neighborhood's stable economic foundation and the disparity between FMR and market rents.
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.