Location: Rockbridge County-Buena Vista city-Lexington city, VA | Metro: Roanoke, VA HUD Metro FMR Area
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 | $1,350 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $202,385 | 0.82% | C |
| 3BR | $2,290 | $298,131 | 0.77% | D |
| 4BR | $2,770 | $380,836 | 0.73% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP 24066, which encompasses Buchanan, VA, and parts of Rockbridge County, Buena Vista city, and Lexington city, VA, reveals several key insights for landlords and small-portfolio investors.
First, let's address whether the rent math works. The Fair Market Rent (FMR) for ZIP 24066 in fiscal year 2024 is set at $970. This figure is slightly below the market rent reported by the Census ACS, which stands at $993. While the difference is modest, it suggests that landlords may need to adjust their expectations and ensure they can cover costs and generate profit at the lower FMR rate.
Second, we consider the affordability of acquiring properties in this area. The median home value in ZIP 24066 is $225,257. However, due to limited data on days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to provide a definitive assessment on the ease of property acquisition. Landlords should proceed with caution, as these factors are crucial for understanding the local real estate market dynamics.
Lastly, we examine tenant demand. With a total population of 4,963, and a renter share of 13.7%, the area has a relatively stable but modest pool of potential tenants. This indicates that while there is demand, it may not be robust enough to sustain a large number of rental properties without careful management and competitive pricing.
In conclusion, ZIP 24066 presents an opportunity for landlords and small-portfolio investors, particularly those willing to operate within the constraints of the FMR guidelines. However, the limited data on property acquisition conditions and the moderate tenant demand suggest that success will depend on strategic planning, competitive pricing, and possibly a focus on niche markets within the area. The modest gap between FMR and market rent requires landlords to be mindful of their expenses and to seek out efficiencies to maintain profitability.
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.