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 | $1,100 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $254,426 | 0.5% | F |
| 3BR | $1,760 | $376,194 | 0.47% | F |
| 4BR | $1,910 | $523,319 | 0.36% | F |
| 5BR | $2,216 | $670,191 | 0.33% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 24551, Forest, VA, stands at $91,067, which provides insight into the financial capacity of households. However, when comparing this figure to the market rate for rent, which is set at $1,699 (ZORI), it becomes evident that affording market-rate rent poses a challenge for many residents. The Family Monthly Income (FMR) for the area, set at $1,190 for zip FY 2024, offers a stark contrast to the ZORI, indicating a significant affordability gap.
To put this into perspective, let's consider the implications for landlords and small-portfolio investors. With only 17.5% of the 28,554 population being renters, competition for tenants willing to pay market rates is limited. This means that landlords must carefully evaluate their rental pricing strategies to attract and retain tenants.
The affordability gap suggests that a substantial portion of potential renters might rely on housing vouchers to cover their rent. Vouchers, which are based on the FMR, would cover up to $1,190 per month. Therefore, landlords who wish to cater to this demographic should align their rental rates closer to the voucher payment standards to ensure a steady stream of tenants.
Landlords considering whether to adopt a voucher-friendly strategy or stick with cash-paying tenants need to understand the local market dynamics. Given the limited number of renters and the affordability gap, focusing on voucher recipients could be a viable approach to maintain occupancy rates and ensure consistent income. However, those who can secure cash-paying tenants willing to meet the higher market rates will benefit from a more lucrative rental income.
The takeaway is clear: in ZIP 24551, landlords must decide between two strategies. They can either set their rents to align with the FMR to attract voucher holders, ensuring stable occupancy but lower monthly income, or they can target the smaller pool of cash-paying tenants who can afford the $1,699 market rate, potentially maximizing their profits but risking vacancy periods.
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.