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 | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $180,245 | 0.64% | D |
| 3BR | $1,590 | $249,201 | 0.64% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 24174, which encompasses Thaxton, VA, in Bedford County, hinge on understanding the difference between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment in this ZIP, the SAFMR for FY 2024 is set at $910. This figure represents the maximum amount that the housing authority will reimburse landlords for rent. However, it's important to note that the local market rent, according to Census ACS data, is significantly lower at $474.
A Section 8 voucher does not cover the entire rent amount. Instead, it subsidizes the difference between the tenant’s contribution and the SAFMR. The tenant is required to pay approximately 30% of their adjusted income towards rent. In ZIP 24174, if we assume an average adjusted income of $1,500 per month, the tenant would contribute around $450 towards rent.
Landlords should also be aware of utility allowances when considering the total compensation they receive. Utility allowances vary but typically add a few hundred dollars to the overall reimbursement. For a two-bedroom unit, the allowance might be around $200 per month, bringing the total reimbursement to $650 ($450 tenant contribution + $200 utilities).
This means that even though the SAFMR is $910, the actual reimbursement received by landlords is likely to be much less, closer to the local market rent. In this scenario, landlords would be reimbursed $650 per month, leaving them with a reimbursement gap of $260 compared to the SAFMR, or a surplus of $176 compared to the local market rent of $474.
To summarize, landlords in ZIP 24174 who participate in the Section 8 program can expect to receive a total reimbursement of about $650 for a two-bedroom apartment, which includes the tenant’s contribution and utility allowances. This amount is significantly below the SAFMR of $910 but above the local market rent of $474, resulting in a monthly surplus for landlords who choose to rent to Section 8 tenants.
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.