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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $235,805 | 0.45% | F |
| 3BR | $1,480 | $346,972 | 0.43% | F |
| 4BR | $1,610 | $454,205 | 0.35% | F |
| 5BR | $1,868 | $621,739 | 0.3% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 24503, which encompasses parts of Lynchburg, Virginia, and Lynchburg City County, can be broken down into several key components. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1060. This SAFMR is specifically tailored to reflect the rental costs within this particular ZIP code, ensuring it accurately represents the local market conditions.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1291 for a similar two-bedroom unit. This indicates that the SAFMR is lower than the actual market rent, creating a scenario where landlords might need to consider the financial implications of accepting a Section 8 voucher.
A Section 8 voucher is designed to cover the difference between the tenant's contribution and the SAFMR. The tenant's portion is typically 30% of their income, while the voucher covers the remainder up to the SAFMR limit. Additionally, there are utility allowances which vary but are generally around $200 per month for a two-bedroom unit. Therefore, if a tenant's monthly income is $2000, their contribution would be $600 (30% of $2000), leaving $460 to be covered by the voucher plus the utility allowance.
In total, the voucher would reimburse the landlord $1060 ($460 for rent plus $200 for utilities and $400 as the base voucher amount). Given the local market rent of $1291, this leaves a shortfall of $231 per month for the landlord. In essence, landlords in ZIP 24503 who accept a Section 8 voucher for a two-bedroom apartment will receive less than the market rate, resulting in an annual gap of approximately $2772.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 24503 is $1060, while the local market rent is $1291. Landlords should expect a reimbursement gap of $231 per month when dealing with Section 8 vouchers, reflecting the specific economic realities of this ZIP code.
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.