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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $237,247 | 0.65% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 24554 hinges on analyzing both its yield potential and stability factors. With a Fair Market Rent (FMR) of $970 for fiscal year 2024, compared to a market rent of $1,146, there's a clear opportunity for landlords to capitalize on the discrepancy, indicating a higher yield potential. The median home value in the area is $215,269, which provides a baseline for property investment costs.
Stability, however, is another critical aspect. ZIP 24554 has a relatively low percentage of renters at 12.3%, suggesting that the majority of residents are homeowners, which can lead to less consistent rental demand. Additionally, the median household income stands at $56,667, which is lower than the national average and could impact tenants' ability to afford higher rents. The absence of data regarding days on market (DOM) makes it challenging to assess how quickly properties might be rented out once they become available.
Given these metrics, ZIP 24554 leans towards being a steady-cashflow zone. While the FMR is notably lower than the market rent, allowing for a decent profit margin, the low renter population and modest household income suggest a market that requires careful tenant selection and management to ensure stable occupancy rates. Landlords and small-portfolio investors should focus on long-term strategies to maintain cash flow rather than short-term flipping opportunities.
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.