Location: Lunenburg County, VA | Metro: Lunenburg County, VA
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 | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $105,937 | 0.94% | C |
| 3BR | $1,280 | $168,108 | 0.76% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 23944, located in Kenbridge, VA, hinges on its financial metrics and demographic characteristics. To analyze this area, we must consider both yield potential and market stability.
Yield Potential: The Financial Market Rent (FMR) for the metro area in fiscal year 2026 is $980, while the market rent for ZIP 23944 is $912. This indicates that the rental market in Kenbridge is slightly below the broader metro average, suggesting modest yield potential. However, the median home value stands at $144,179, which is significantly lower than the FMR. This suggests that properties in this ZIP code can be purchased at a discount relative to their rental potential, thereby offering a decent yield when considering the purchase price and rental income.
Market Stability: With 26.7% of the population being renters, the market has a moderate level of demand. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, but the average household income of $59,321 provides insight into the economic stability of the area. Given the lower income levels, there may be some risk in terms of tenant default rates, especially if the rental prices are set too high relative to the income levels.
Based on these figures, ZIP 23944 leans towards a steady-cashflow zone. The relatively low home values and market rents indicate that while yields might not be exceptionally high, they are still positive and sustainable. The moderate percentage of renters and the average income suggest a stable but not highly dynamic market. Landlords and small-portfolio investors should expect a consistent but not explosive return on investment in this area.
To summarize, the key figures driving this assessment are the $980 metro FMR versus the $912 market rent, the $144,179 median home value, and the $59,321 average income. These metrics point to a market that offers a reasonable yield without the volatility associated with higher-risk areas.
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.