Location: Prince Edward County, VA | Metro: Lynchburg, VA MSA
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 | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $257,561 | 0.65% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 23958 reveals a mixed picture when it comes to yield and stability for real estate investments, particularly for Section 8 properties.
Yield: The Fair Market Rent (FMR) for ZIP 23958 in fiscal year 2024 is set at $1,080, which is notably lower than the market rent of $1,157. However, the median home value stands at $223,225, indicating that the area has a relatively affordable entry point for property acquisition. This combination suggests that while the rental income might be slightly less than market rates, the cost of purchasing a home is also lower, potentially leading to decent cash-on-cash returns for Section 8 landlords.
Stability: Stability can be gauged by looking at the percentage of renters, the number of days on market (DOM), and the average household income. In ZIP 23958, 22.2% of residents are renters, which is a moderate figure. The absence of day DOM data means there's no immediate insight into how quickly homes sell, but the average household income of $53,650 provides some context about the economic health of the area. This income level is not exceptionally high, but it does suggest a stable tenant base capable of maintaining consistent rental payments.
Based on these figures, ZIP 23958 is best classified as a steady-cashflow zone rather than a high-yield/low-stability market. The relatively low FMR compared to market rent, combined with an affordable median home value, points towards a scenario where landlords can expect reliable, if not exceptionally high, returns. The moderate percentage of renters and stable household income further support this classification, indicating that while the area may not offer explosive growth opportunities, it provides a solid foundation for long-term investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.