by Daniel Yoon | eXp Realty | Richmond, Virginia
If you are a parent with a child at VCU or University of Richmond, buying a property near campus can make more financial sense than paying 4 years of rent. If you are an investor, student housing in Richmond generates strong rental returns. Here is the math and the strategy for both.
Near VCU: The Fan District and Oregon Hill
Typical rental: $800 to $1,200/month per bedroom. A 3-bedroom house rents for $2,400 to $3,600/month to student groups.
Purchase price: $300,000 to $500,000 for a row house in The Fan.
The parent strategy: Buy a 3-bedroom. Your child lives in one room, you rent the other two to roommates. Rental income covers 60% to 80% of the mortgage. After 4 years, sell the property (likely appreciated 15% to 20%) or keep it as a rental.
The investor strategy: Buy and rent the entire property to student tenants. Gross yield: 6% to 8%. High turnover but consistent demand. VCU enrolls 30,000+ students annually.
Near University of Richmond: Westover Hills and Forest Hill
Purchase price: $350,000 to $550,000.
Rental demand: Lower than VCU area but steady. More graduate students and young professionals than undergrads.
University of Richmond is a smaller campus (4,000 students) with more on-campus housing. The rental opportunity is smaller but the properties tend to attract higher-quality tenants and appreciate well.
Financing Student Housing
If a parent occupies the property (through their student), it may qualify for owner-occupied financing (lower rates, lower down payment). If purely an investment, expect 20% to 25% down and rates 0.5% to 0.75% higher than owner-occupied.
FAQs
Is buying near VCU a good investment?
Yes. Consistent rental demand from 30,000+ students, strong appreciation in The Fan, and gross yields of 6% to 8% make VCU-area properties solid investments.
Can parents get owner-occupied rates?
If the student is a dependent and will live in the property, some lenders classify it as owner-occupied. Discuss with your lender before applying.
Interested in student housing investment? Call Daniel Yoon at (804) 896-2694. I help parents and investors find the right properties near Richmond’s universities.