Multifamily Development Sites in Richmond, VA: How to Find and Evaluate Apartment Land in the City

Multifamily development sites in Richmond, VA are worth the most when three things line up: the zoning already allows apartments at the density you need, water, sewer and power are close by, and achievable rents support what the seller wants for the land. In the City of Richmond, that usually points to parcels in districts like TOD-1, B-7 or R-63, often near the GRTC Pulse, where a rezoning is not required.

Below is how developers screen apartment land in the city in 2026: zoning, the pending Code Refresh, parking, utilities, transit, affordable housing incentives, and how land gets priced. For the investment side, including existing apartment buildings and how they trade, see our Richmond multifamily investment guide.

Which Richmond zoning districts allow apartments by right?

Richmond’s current zoning ordinance (City Code Chapter 30) permits multifamily dwellings by right in several districts. Three that come up often on infill sites, based on the ordinance as compiled by the city in October 2020:

Other districts, including the B-4 and B-5 central business districts, also allow dwelling units under their own rules, and these districts generally require a plan of development for a new building with more than ten units. The compiled ordinance is several years old and has been amended since, so confirm the current text on the city’s online code and get a zoning confirmation from Planning and Development Review (PDR).

When you need a rezoning or special use permit

If the parcel does not allow the density or height you need, the path is a rezoning, conditional rezoning, special use permit (SUP) or, on sites of ten acres or more, a community unit plan. Per the city’s Land Use Administration page, the Planning Commission reviews and recommends, and City Council decides. Richmond 300 is the city’s master plan and the policy framework the zoning rewrite is meant to carry out, so read its future land use designation for your parcel before you commit to a price that assumes more units.

How does Code Refresh affect apartment sites?

Richmond’s Code Refresh would replace the zoning ordinance and assign a new district to every parcel. The city released Public Review Draft #3 on August 17, 2026, and as of this writing City Council has not adopted it. Under the draft’s use table, buildings with 13 or more units would be allowed by right in the RM-C and RM-S residential multi-unit districts, all five mixed-use districts (MX-3 through MX-U) and the IX industrial mixed-use district.

For a land buyer, the question is whether your parcel’s proposed district allows more, the same, or less than today. A site zoned for three stories today that is mapped MX-5 could gain value; an in-town industrial parcel mapped IL could lose its residential option. My Code Refresh explainer covers the draft districts and timeline in more detail.

Do Richmond apartment projects still need parking?

Not for zoning purposes. City Council repealed off-street parking and loading minimums in April 2023, so a developer now decides how much parking to build. That can raise unit counts on tight urban lots and remove expensive structured parking from the budget. Lenders, appraisers and renters still have expectations, and parking you do build must meet design standards. See what the parking minimum repeal means for the details.

What about utilities, transit and site conditions?

The City of Richmond Department of Public Utilities (DPU) provides natural gas, water, wastewater and stormwater service, and its Development Services team handles new service connections, with connection charges set by published fee schedules. Dominion Energy provides electric service. On any site, confirm line sizes, available capacity and who pays for extensions before you finalize the land price.

Transit matters for both zoning and rent. The GRTC Pulse bus rapid transit line runs along Broad Street between Willow Lawn and Rocketts Landing, with 10-minute peak weekday service. The city adopted its Pulse Corridor Plan in July 2017 to guide denser development near stations, which is one reason TOD-1 and similar zoning shows up along that corridor.

• Zoning: current district, proffers or SUP conditions, overlay and old and historic district status, and the proposed Code Refresh district.
• Master plan: Richmond 300 future land use for the parcel and neighbors.
• Survey and title: boundaries, easements, alleys, encroachments and any paper streets.
• Environmental: Phase I ESA, especially on former industrial or auto-service land; floodplain status.
• Geotechnical: soils, rock, groundwater and old foundations or fill.
• Utilities: water, sewer, gas and electric capacity, extension cost and connection charges.
• Site plan: access, fire lanes, refuse and loading, stormwater management.
• Market: rents and absorption for comparable new buildings nearby.

What affordable housing incentives apply in Richmond?

Richmond has several tools, each with its own rules and approvals:

• Affordable dwelling unit density bonus (City Code Chapter 30, Article VI, Division 10.1): a voluntary program. For multifamily in districts with a lot-area-per-unit limit, a site permitted 24 or more units can add up to 10% more if at least 6% of the total are affordable; smaller sites can add up to 15% with at least 9% affordable. Rental units qualify at no more than 60% of area median income (AMI).
• Affordable Housing Performance Grant: offered by the city’s Economic Development Authority for new-construction multifamily rental projects. Per its application packet, the annual grant is based on new real estate taxes on the improvements, runs 15 years with a possible 15-year extension, and requires units at or below 80% AMI and a demonstrated financing gap. EDA Board and City Council approval are required, and applications are not accepted once construction has started.
• Affordable Housing Partial Tax Exemption Program: for rehabilitation, not new construction. For 5+ unit buildings at least 20 years old, it requires at least 30% of units at or below 80% AMI and renovation of at least 40% of base value, for a 15-year partial exemption, per the city.
• Low-income housing tax credits: administered in Virginia by Virginia Housing. Per Virginia Housing, 9% credits are competitive, with applications once a year, usually in mid-March, and 4% credits paired with tax-exempt bonds are available on a rolling basis.

How is multifamily land priced in Richmond?

Developers price apartment land as a residual: what the finished, stabilized building is worth, minus everything it costs to build it and a profit margin. Whatever is left is what they can pay for the dirt. Brokers and buyers often express that as a price per unit, or per door, of allowed density.

1. 1Estimate stabilized value: projected net operating income divided by a market cap rate.
2. 2Subtract hard and soft costs: construction, site work, utilities, design, permits, financing, leasing and reserves.
3. 3Subtract developer profit: the return needed to justify the risk.
4. 4Divide by units: the remainder is the supportable land price, and dividing by the unit count gives a per-door figure to compare against the asking price.

The unit count is only as good as the zoning, so discount a per-door price on a site that needs a rezoning for time and approval risk. Small changes in rents, costs or interest rates also swing the residual sharply. The pillar multifamily investment guide covers how completed buildings are valued, and the city’s zoning staff and your land-use attorney are the final word on what a parcel allows.

Want a second look at a Richmond apartment site?

If you are weighing a multifamily site in the city, I can help you pull together the zoning, utility and market questions before you commit to a price, and track down other options through my listings and network. Get in touch with the address and what you are hoping to build.