Location: Lynchburg, VA | Metro: Lynchburg, VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 24536, it's essential to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1090 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental rates deemed fair for this precise location.
The SAFMR is used to determine the maximum amount that a housing authority will pay on behalf of a tenant with a voucher. However, the actual reimbursement to landlords depends on several factors, including the tenant's contribution and any utility allowances. Typically, the tenant is expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1800 per month, the tenant would contribute approximately $540 towards rent.
Landlords receive the remainder of the rent from the housing authority, up to the SAFMR limit. In ZIP 24536, this means the landlord would receive $550 from the housing authority if the tenant contributes $540. This calculation assumes there are no additional utility allowances, which can vary but typically do not exceed $100 per month.
Given these specifics, the total rent paid to the landlord by both the tenant and the housing authority would be around $650 if the utility allowance is considered. Therefore, landlords in ZIP 24536 can expect a reimbursement gap of about $440 per month, which is the difference between the SAFMR ($1090) and the total payment received ($650).
This gap represents the shortfall between the market rent and the amount covered by the voucher program. It's important for landlords to factor this into their decision-making process when considering whether to accept Section 8 tenants. The gap is a consistent challenge, as it requires landlords to either subsidize the remaining rent or seek ways to reduce their costs to maintain profitability.
In summary, landlords in ZIP 24536 who participate in the Section 8 program should anticipate a reimbursement gap of $440 for a two-bedroom apartment, based on the SAFMR and assuming standard tenant contributions and utility allowances. This gap must be managed carefully to ensure financial viability of the property investment.
Data Sources: FMR data from HUD (2027). 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.