Location: Lynchburg, 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 | $1,210 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $208,734 | 0.7% | D |
| 3BR | $2,020 | $272,002 | 0.74% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering real estate investment in ZIP 24122 (Montvale, VA) might raise several objections based on the provided data.
Objection 1: Will Fair Market Rent (FMR) of $970 (zip FY 2024) cover the mortgage on a $252,846 home?
The median home value in ZIP 24122 is approximately $248,032, according to recent data. However, the average home price is $248,572, suggesting that a $252,846 home is slightly above the average. Based on the current FMR of $970, an investor should be cautious. This amount may not fully cover the mortgage payments on a home valued at $252,846, especially considering property taxes, insurance, and maintenance costs. To accurately determine if the FMR will cover the mortgage, one must calculate the total monthly expenses against the rental income.
Objection 2: Is there enough renter demand at 14.2%?
The rental market in Montvale, VA, is relatively small, with only a 14.2% renter occupancy rate. While this does indicate a lower demand for rental properties, it also suggests potential opportunities for investors who can target niche markets or provide unique amenities. The available rental listings are limited, with only a few homes and apartments listed on popular real estate sites. This scarcity may drive up demand and allow for higher rental yields, despite the low overall percentage.
Objection 3: Will vouchers keep pace with N/A market rents?
The data does not specify whether the Section 8 voucher program in Montvale keeps pace with market rents. However, a recent trend observed in other areas indicates that authorities may pause rent hikes to maintain affordability. Given the lack of specific local data, it's prudent to assume that voucher amounts may struggle to match rising market rents. Investors should monitor local policy changes and consider adjusting their rental strategies accordingly.
In summary, while ZIP 24122 presents some challenges for real estate investment, particularly regarding rental income and demand, it also offers opportunities for those willing to carefully manage their properties and adapt to local conditions.
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.