Location: Lynchburg, VA | Metro: Lynchburg, VA MSA
| 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 |
The analysis for ZIP code 24506 in Virginia focuses on the implications of the Section 8 program for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1140 annually. However, the median home value and current market rent for the area are not available, making it challenging to provide a precise comparison.
To derive the rough cap-rate picture, we need to consider the annualized FMR against potential purchase prices or market rents. Since the median home value is not provided, we cannot calculate an exact gross yield. But, assuming a typical scenario where a property might be valued based on rental income, let's use the FMR as a proxy for market rent.
If the FMR of $1140 is taken as the annual market rent for a 2-bedroom property, the gross yield would be calculated as the annual rent divided by the property value. Without a specific property value, we can only hypothesize that if the median home value were, say, $150,000, the gross yield would be approximately 0.76%. This calculation assumes a simplistic view where the property value directly correlates with rental income, which is often not the case due to various factors such as location, amenities, and property condition.
The lack of data on median home values and market rents means that the gross yield comparison remains speculative. Additionally, the unknown percentage of renter density and the number of days on market (DOM) further complicate the analysis. Typically, higher renter density and shorter DOM suggest a more favorable environment for rental properties, including those participating in the Section 8 program.
In conclusion, while the FMR provides a benchmark for potential rental income under the Section 8 program, the absence of critical market data prevents a definitive assessment of the gross yield and overall attractiveness of investing in this ZIP code. Landlords and investors should gather additional local market intelligence to make informed decisions.
Data Sources: FMR data from HUD (2027).
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.