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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $176,254 | 0.61% | D |
| 3BR | $1,480 | $233,261 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 24526, located in Big Island, VA within the Lynchburg, VA MSA, reveals key insights for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1080. However, the market rent, as per Census ACS data, stands at $809. This indicates that landlords might struggle to meet the FMR without adjusting their expectations to align with the actual market conditions.
Acquisition in this ZIP code is relatively affordable. The median home value is $199,770. Although the average days on market (DOM) and the percentage of homes requiring price cuts are not available, the median home value suggests a lower barrier to entry compared to other regions. This could be beneficial for investors looking to acquire properties without significant capital outlay.
Tenant demand is moderate. With a total population of 1,494, the renter share is 25.1%. This means that approximately 375 residents are likely seeking rental housing. While this number is not high, it still represents a viable tenant pool for landlords and small-portfolio investors.
In conclusion, ZIP 24526 presents an opportunity for investors who can navigate the discrepancy between FMR and market rents. Acquisition is affordable given the median home value, but the lack of specific DOM and price cut data introduces some uncertainty. Tenant demand is present but limited by the size of the local population. Overall, the ZIP code offers a niche investment opportunity with manageable risks and potential returns, especially for those willing to adapt to the local market conditions.
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.