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 | $910 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $223,407 | 0.44% | F |
| 2BR | $1,130 | $246,906 | 0.46% | F |
| 3BR | $1,570 | $356,940 | 0.44% | F |
| 4BR | $1,900 | $480,099 | 0.4% | F |
| 5BR | $2,204 | $594,729 | 0.37% | F |
U.S. Census Bureau data (2024)
To fit ZIP 24450, which encompasses Lexington, VA, Rockbridge County, Buena Vista city, and Lexington city, VA, into a Section 8 portfolio strategy, it should be considered an appreciation play. The data provided shows that this area has a price-cut share of 0.2%, indicating that properties here rarely need to be discounted to sell, and a Not Applicable (N/A) day DOM, suggesting that homes are sold quickly without prolonged periods on the market.
The Fair Market Rent (FMR) for ZIP 24450 in fiscal year 2024 is set at $1,060, while the market rent stands at $1,662. This means that the gap between the two is significant, but the primary focus for this ZIP code is not on cash flow. Instead, the key lies in the stability and potential growth of property values.
The median home value in ZIP 24450 is $359,853, and the median income is $76,587. With a renter share of 31.7%, there's a notable presence of renters in the area, but the low price-cut share and quick sales indicate a robust real estate market. Properties here are likely to appreciate over time due to strong demand and limited need for price adjustments.
An appreciation play strategy focuses on acquiring properties that will increase in value over time, allowing for capital gains when sold. In ZIP 24450, the combination of stable rental markets and rapid property sales without price cuts suggests that investments here will hold their value well and potentially grow. This makes it an ideal choice for landlords and small-portfolio investors looking to build long-term wealth through property appreciation.
While the cash flow might not be as high as in other areas due to the lower FMR compared to market rents, the stability and growth potential of property values outweigh this consideration. Investors can leverage the strong local economy and the high median income to ensure steady occupancy and minimal vacancy risks, further supporting the appreciation play strategy.
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.