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 | $1,020 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $143,782 | 0.82% | C |
| 3BR | $1,630 | $249,712 | 0.65% | D |
| 4BR | $1,770 | $289,706 | 0.61% | D |
| 5BR | $2,053 | $382,349 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 24504 in Lynchburg, VA, represents a neighborhood with a significant rental market presence. With a total population of 9,632, nearly half (46.4%) of the residents are renters, indicating a substantial demand for rental properties. The median household income here is $52,571, reflecting a middle-class community. The median home value stands at $178,248, which suggests a mix of affordable and moderately priced housing options.
From an investment perspective, the Fair Market Rent (FMR) for ZIP 24504 in fiscal year 2024 is set at $1,140, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), is slightly higher at $1,188. This indicates a relatively stable rental market where the government's rental assistance programs can provide a steady stream of income for landlords who qualify for Section 8 vouchers. However, the slight premium in market rent over FMR also presents opportunities for landlords willing to invest in property improvements to command higher rents outside of the voucher program.
The neighborhood’s characteristics make it suitable for both hands-off and hands-on investors. For those preferring a hands-off approach, the presence of a large rental market and a robust Section 8 program ensures a reliable source of tenants and income. Meanwhile, value-add buyers can find potential in properties that could benefit from renovations, positioning them to attract tenants willing to pay above the FMR. The balance between the government-set rent and the market rate offers a strategic point for investors to decide whether they want to focus on passive income through the voucher program or active management to capitalize on the slightly higher market rents.
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.