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 | $980 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $305,497 | 0.37% | F |
| 3BR | $1,560 | $408,480 | 0.38% | F |
| 4BR | $1,690 | $526,820 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP 24556, located in Goode, VA, and part of the Lynchburg, VA MSA metro area, is best suited as an appreciation play within a Section 8 portfolio strategy. Although the immediate cash flow potential is limited due to the significant spread between the Fair Market Rent (FMR) and the market rent, the long-term prospects for property value appreciation are strong.
The FMR for ZIP 24556 in fiscal year 2024 is set at $1140, while the current market rent stands at $787. This indicates that properties in this area are currently undervalued relative to their rental potential, suggesting a future increase in market rents as they align more closely with FMR levels. Additionally, the median home value of $417,185 provides a solid base for appreciation, especially considering the lack of price-cut shares and days on market (DOM) statistics indicating a stable and potentially rising real estate market.
The low renter share of 11.0% and median income of $87,250 point towards a predominantly owner-occupied community with a growing economy. As incomes rise and the demand for housing increases, the rental market will likely become more competitive, driving up rents and property values. This makes ZIP 24556 an excellent choice for investors looking to capitalize on long-term growth rather than short-term cash flow.
While it's important to consider cash flow, the unique combination of undervalued properties and a robust local economy in ZIP 24556 positions it as a strategic investment for appreciation. The eventual alignment of market rents with FMR will provide a steady increase in rental income, complementing the expected rise in property values.
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.