Richmond and its surrounding counties offer investors a combination of steady population growth, a diversified employment base, and a median sale price that still pencils out for long-term rental holds. The key is picking the right submarket, understanding Virginia landlord-tenant law, and running your numbers before you make an offer.
Written by Mike Boone, Owner and Broker of Boone Residential, a Richmond, VA brokerage. Licensed by the Virginia Real Estate Board.
Is Richmond, VA a Good Market for Real Estate Investing in 2026?
Quick answer: Richmond and its surrounding counties offer investors a combination of steady population growth, a diversified employment base, and a median sale price that still pencils out for long-term rental holds. The key is picking the right submarket, understanding Virginia landlord-tenant law, and running your numbers before you make an offer.
Why Richmond's Market Fundamentals Favor Long-Term Investors
Real estate investing rewards patience, and Richmond rewards investors who understand the local landscape. This isn't a speculative flip market. It's a city and surrounding suburban county system where families put down roots, employers keep adding jobs, and rental demand stays durable across economic cycles.
The U.S. Census Bureau's American Community Survey data for Richmond city gives you a grounded look at household income and housing cost ratios. Pair that with the county-level profiles for Chesterfield, Henrico, Hanover, and Powhatan, and you start to see real differences in population growth, commuting patterns, and housing stock that matter when you're choosing where to buy.
For current inventory, closed-sales volume, and median price trends by month and quarter, the Richmond Association of REALTORS® market statistics is the most reliable local source. I check it regularly when I'm advising clients on where the market is moving — it tells you whether a submarket is tightening or softening before you commit to a purchase price.
What the Current Numbers Tell Us
The table below reflects Zillow market data for the Midlothian area, trailing roughly 90 days as of August 2026. These are area-level figures — any individual property's value depends on condition, street, build year, and timing — but they give you a useful baseline for underwriting.
Market Indicator | Midlothian Area (Aug 2026) |
|---|---|
Median Sale Price | $470,000 |
Median Days on Market | 29 days |
Active Listings | 408 |
New Listings (last 30 days) | 208 |
Homes Sold (last ~90 days) | 563 |
563 closed sales in roughly 90 days against 408 active listings is a market that's moving — not a stagnant inventory situation. Buyers are still active, and well-priced properties aren't sitting. For investors, that also means you're competing with owner-occupants, so your offer strategy needs to be sharp.
If you want to understand whether home values in the broader Richmond area are trending up or down before you commit capital, see this breakdown of Richmond home value trends I put together for exactly that question.
Submarket Differences Matter More Than Metro Averages
Chesterfield County and Henrico County aren't the same market. Neither are Midlothian and Glen Allen. Each has its own price band, tenant profile, property tax rate, and inventory dynamic. Before you decide where to buy, pull the county-level Census data and cross-reference it with the most recent REALTOR® association reports. I walk my clients through that comparison early in the process — buying in the wrong submarket is a harder mistake to recover from than overpaying slightly in the right one.
Strategic Approaches to Richmond Investment Buys
Single-family rentals in suburban Chesterfield and Henrico
The suburban counties surrounding Richmond have absorbed significant population growth over the past decade. That growth creates durable rental demand, particularly from households who want suburban square footage but aren't ready or able to buy. Single-family rentals in established neighborhoods here tend to attract longer-tenancy renters, which reduces turnover costs and vacancy risk.
The trade-off: entry prices in many of these neighborhoods are higher than in the city proper, so cash-on-cash return in year one may be modest. Long-term appreciation and tenant stability often make up for it, but run your numbers honestly before you close.
Small multifamily in and near Richmond city
Duplexes and small multifamily properties in Richmond city can offer better initial yield in some cases, but they come with a different management profile. The Virginia Residential Landlord and Tenant Act (VRLTA), Va. Code § 55.1-1200 et seq., governs most residential rental relationships in Virginia, with specific requirements around lease terms, security deposits, notice periods, habitability obligations, and eviction procedures. Applicability and any local-authority exceptions are set out in Va. Code § 55.1-1201. Before you buy any rental property in this market, confirm whether your unit falls under VRLTA scope and what that means operationally — getting that wrong costs more than a bad deal.
Fixer-uppers versus turnkey buys
This is a question I get from investors constantly. The short answer: both can work, and both can fail, depending on your execution capacity and market knowledge. I've written a detailed comparison at New Construction vs. Fixer-Upper: What's the Smarter Move and a deeper dive on the real risks and rewards of fixer-uppers that are worth reading before you make that call. The key variable is whether the after-repair value in your target submarket justifies the acquisition cost plus renovation budget with enough margin for error.
Know your closing costs going in
Virginia imposes a state recordation tax on deeds under Va. Code § 58.1-801 — 25¢ per $100 (or fraction) of the consideration or actual property value, whichever is greater. Cities and counties may add a local recordation tax of up to one-third of the state amount under Va. Code § 58.1-814. These transfer and recordation taxes are statutory and separate from negotiable transaction costs like commissions and lender fees. The exact closing-cost picture for an investment purchase depends on your loan structure, the county, and how your contract is negotiated — confirm your specific numbers with your attorney, lender, and closing officer before you're locked in, not after.
Property management and licensing compliance
If you're buying rental property and don't plan to self-manage, the property manager or leasing agent you hire must hold a license from the Virginia Real Estate Board under Va. Code § 54.1-2106.1. That's not a technicality — it's how you protect yourself legally and financially. The Real Estate Board is the right place to verify credentials and check for any disciplinary history before you sign a management agreement.
What Separates Investors Who Build Wealth from Those Who Don't
I've watched a lot of people buy investment properties in this market. The ones who build real wealth over time share a few habits:
- They buy based on verified numbers, not optimistic projections.
- They pick submarkets they understand rather than chasing whatever looks cheap on a map.
- They account for vacancy, maintenance, and management costs before they ever calculate a return.
- They treat tenant relationships and legal compliance as part of the investment, not a nuisance separate from it.
Real estate is one of the most reliable ways families build generational wealth, and I believe that genuinely. But it's not passive income on autopilot. The investors I've worked with who do it well treat it like a business from day one.
Your specific numbers, the right submarket for your goals, and the right property type for your capacity all depend on factors unique to your situation. That's exactly the kind of conversation I have with investors before they start writing offers.
Frequently Asked Questions
Is Richmond, VA a good place to buy investment property right now? Richmond and its surrounding counties offer steady population growth, diversified employment, and a housing market that continues to move at pace — recent data shows 563 closed sales in roughly 90 days in the Midlothian area alone. Entry prices are higher than they were a few years ago, but rental demand remains durable across the metro. Whether it makes sense for your goals depends on your target submarket, property type, and financing structure, which is worth working through with a local agent before you commit.
What Richmond-area neighborhoods are best for long-term rental investing? Chesterfield and Henrico counties are strong candidates for long-term single-family rental holds, given consistent population growth and tenant demand for suburban housing. Within Richmond city, areas near employment centers and transit corridors can support multifamily rental income. The best way to identify current high-demand submarkets is to review the Richmond Association of REALTORS® monthly market reports and compare county-level data from the U.S. Census Bureau QuickFacts, rather than relying on static neighborhood lists.
What do I need to know about landlord-tenant law before buying a rental in Richmond? The VRLTA (Va. Code § 55.1-1200 et seq.) governs most residential rental relationships in Virginia and sets specific requirements around leases, security deposits, notice periods, habitability, and remedies. Before purchasing any rental property, confirm whether your unit falls under VRLTA coverage and review those obligations with a Virginia-licensed attorney. Getting the legal framework wrong is one of the most common and costly mistakes first-time landlords make in this market.
Are single-family rentals or small multifamily properties better in the Richmond market? Both can work well in different parts of the Richmond metro, and the right choice depends on your capital, management capacity, and return goals. Single-family rentals in suburban Chesterfield and Henrico tend to attract longer-tenancy renters and offer strong appreciation potential. Small multifamily properties in Richmond city can offer higher initial yield in some cases but typically require more active management and stricter legal compliance. Run the numbers on both in your target submarket before you decide.
Where can I find current Richmond housing market stats by month or quarter? The most reliable local source is the Richmond Association of REALTORS® market statistics page, which publishes monthly and quarterly data on median sale prices, closed sales, days on market, and inventory levels for the Richmond metro and surrounding counties. For county-level demographic and housing context, the U.S. Census Bureau QuickFacts pages for Richmond city and each surrounding county are the most authoritative public source.
Building wealth through Richmond real estate is a realistic goal, but it requires the right submarket, the right property, and a clear-eyed look at your numbers before you close. If you're ready to talk through what that looks like for your situation, schedule a call with me and we'll start there.
About Mike Boone
Mike Boone is the Owner and Broker of Boone Residential, a Richmond, VA real estate brokerage where he serves as a trusted advocate for buyers and sellers and has fueled the company's growth through authentic, client-first service.
Boone Residential · 804-409-8655 Equal Housing Opportunity. Boone Residential is regulated by the Virginia Real Estate Board.
This article is general information only and is not legal, tax, or financial advice. All information is deemed reliable but not guaranteed and should be independently reviewed and verified. Confirm your specific numbers, tax obligations, and legal requirements with your attorney, tax advisor, lender, or closing officer before making any investment decision.
