1st Advantage MortgageRichmond long-term rentals are supported by state government, VCU and its health system, and banking and law employers.
Long-term leases in Richmond
Lease terms follow the academic calendar near campus and are steadier in Northside and Southside. Use the signed lease or an appraiser rent schedule, and confirm the city's current tax estimate since Richmond reassesses annually.
Where to start looking
- Southside and Forest Hill. post-war ranch homes and apartment areas
- The Fan and Museum District. Victorian rowhouses divided into apartments near VCU
How this strategy works for long-term rental investors
Long-term leases give a DSCR lender the clearest evidence of income. A signed lease and proof of the deposit and first month's rent help on a purchase, while a refinance usually relies on the lease or the appraiser's rent estimate.
When a unit is vacant at closing, depending on the lender, programs underwrite on market rent from the appraisal instead of a lease, which removes the pressure to have a tenant in place before you buy. Rent increases at renewal can lift the ratio on a later refinance, which is why many investors buy a property with a modest ratio and plan to raise rent as leases roll over.
What is different in Richmond
Two Census medians frame the Richmond rental market: gross rent of $1,372 a month, which is about 13% below the Virginia median of $1,579, and a home value of $353,000, which is about 8% below the Virginia median of $383,700. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 4.7%, a lean ratio that leaves little room for taxes, insurance and dues. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
56.5% of households in Richmond rent, well above the Virginia median of 33%. A large renter base supports steady leasing but also means plenty of competing listings. Incomes matter for rent growth: the median household earns $64,587, well below the Virginia median of $93,170, and 52% of renters are already cost-burdened at 30 percent of income or more.
The return clock runs 45 days from move-out in Virginia, so Richmond landlords should keep move-in photos and repair receipts.
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Richmond's from a municipal source. A short call to the city and the independent city of Richmond before you make an offer is cheap insurance. On lodging taxes, a Richmond host should read this first. Virginia applies its retail sales tax to short-term accommodations, and localities may levy a transient occupancy tax on stays of fewer than 30 consecutive days. When a booking platform handles the reservation it collects the tax on the whole charge, and when a host books directly the host collects and remits.
Yields near 4.7% make Richmond a market for careful buyers. The ratio can still work, usually through a lower loan amount, a rent above the median or a property with several units. Age is the main physical risk here: median year built 1959 points to deferred maintenance in a share of listings. Renter-heavy markets like Richmond favor investors with a clear tenant profile, whether workers, students or families.
About 9% of Richmond's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 6.2%.
| Indicator | Virginia | Richmond | Difference |
|---|---|---|---|
| Typical owner-occupied value | $383,700 | $353,000 | -8% |
| Typical monthly rent | $1,579 | $1,372 | -13% |
| Households that rent | 32.7% | 56.5% | +73% |
| Tax as a share of home value | 0.73% | 0.89% | +23% |
| Annual property tax bill, median | $2,790 | $3,150 | +13% |
| Household income, median | $93,170 | $64,587 | -31% |
| Residents (Census estimate) | 8,705,170 | 229,359 |
Citywide medians as a test
At the city medians a DSCR file in Richmond has $1,110 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $835 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
What else to plan for
Property management is a cost to model. Depending on the program, lenders do not deduct it in the ratio, but your own return will, and out-of-town owners usually hire it anyway.
Bring this to the first call
- Reserves in liquid accounts after closing
- Security deposit held and the state's deposit rules
- Landlord insurance quote with the full premium
- Association dues and any special assessments
- Utility responsibility written into the lease
Go deeper
- DSCR loans in Richmond, VA
- Program guide for this strategy
- BRRRR Investors in Richmond
- Small Multifamily Investors in Richmond
- All Virginia DSCR loans
Test your Richmond numbers in the calculator, then apply now or ask for a quote.
Where these facts come from
- FEMA National Risk Index
- Wikipedia article, Richmond, Virginia
- Text of Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7) for Richmond landlords
- For nightly stays in Richmond: Virginia Tax, accommodations
- Va. Code 58.1-3819
We took the Richmond data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Last reviewed October 2026; the city and county have the final word on Richmond rules. Availability varies by property and program and is not an offer to lend. See disclosures.
Frequently asked questions
How does the VCU calendar affect Richmond rentals?
Leases near campus often start in August, so plan vacancy for gaps.
How does a lender count rent on a Richmond long-term rental?
Underwriters compare the lease with the appraiser's rent estimate and divide the lower figure by the whole monthly payment.
Does a tenant need to be in place before I close in Richmond?
Depending on the lender, programs accept a vacant unit when the appraiser supplies a market rent schedule.
How much payment fits the median Richmond rent?
The denominator is the whole housing payment. Using Richmond's median rent of $1,372, a ratio of 1.25 allows $1,098, and a ratio of 1.00 allows all $1,372.
Are there deposit limits for Richmond rentals?
Under Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7): The deposit is due back within 45 days of move-out. Check the statute and your lease before collecting.
What will a lender ask long-term rental investors for in Richmond?
The usual set is the contract, rent evidence, insurance and tax estimates, bank statements and ID, with extra papers for LLCs, foreign nationals or properties with several units.
Can I live far from Richmond and still qualify?
Not for the loan itself; the file is about the Richmond property's rent, your credit and your reserves. Distance mostly changes how you manage the asset.