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 | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $232,745 | 0.46% | F |
| 3BR | $1,480 | $292,740 | 0.51% | F |
| 4BR | $1,580 | $369,775 | 0.43% | F |
| 5BR | $1,833 | $433,392 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 24523, centered around Bedford, Virginia, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area is set at $1110 for fiscal year 2024, while the Census ACS reports a market rent of $810. This creates a $300 gap, or approximately 27%, between what voucher tenants can pay and the actual market rate.
The discrepancy in favor of FMR over market rent means that voucher tenants can provide a higher rental income than the average market rate, making it a yield play. Landlords who accept Section 8 vouchers in this region can benefit from receiving $1110 per month, which is notably above the typical $810. This scenario is particularly advantageous given the local economic conditions: Bedford, VA has a median home value of $276,952 and a median income of $73,957. With only 19.7% of residents renting, there is a smaller pool of potential tenants, thus increasing competition for rental properties and driving up demand for those willing to accommodate voucher holders.
The higher FMR compared to the market rent also means that landlords can potentially offset any perceived risks associated with housing voucher tenants. These risks might include longer application processes or the possibility of less frequent rent increases. However, the financial advantage of receiving $1110 per month versus the market average of $810 compensates for these factors, providing a stable and lucrative income stream for property owners.
In summary, the analysis for ZIP 24523 underscores that accepting Section 8 vouchers can be a strategic decision for landlords looking to maximize their rental income. Given the specific economic context of Bedford, VA, the benefits of renting to voucher tenants are clear and substantial.
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.