Location: Lynchburg, VA | Metro: Lynchburg, VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
ZIP 24501, located in Lynchburg, VA, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 24501 in fiscal year 2024 is set at $1090, which is below the market rent of $1238. This creates a spread of $148 per unit, providing a stable cash flow above the guaranteed rental income. Additionally, the median home value in the area is $193,475, indicating that property acquisition costs are relatively low.
The 0.2% price-cut share and 32-day Days on Market (DOM) suggest that while there is some negotiation room, the market moves quickly, making it advantageous for landlords who can list their properties competitively. With a 53.0% renter share and a median income of $42,222, the demand for affordable rentals is strong, aligning well with the Section 8 program's focus on lower-income households.
To further illustrate, Zillow reports 104 homes for sale in ZIP 24501, with a median sales price of $131,725. This makes it feasible for landlords to acquire properties without a significant capital outlay, thus maximizing the potential for positive cash flow. Over the past year, 615 properties have been sold in the area, showing a healthy level of activity and turnover.
In conclusion, ZIP 24501 offers a solid foundation for a Section 8 portfolio due to its favorable cash flow dynamics and strong rental demand. Landlords should focus on acquiring properties that can command rents slightly above the FMR to ensure a consistent and reliable income stream.
Data Sources: FMR data from HUD (2027). 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.