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 | $940 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $234,390 | 0.46% | F |
| 3BR | $1,500 | $308,037 | 0.49% | F |
| 4BR | $1,620 | $411,890 | 0.39% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 24574 (Monroe, VA) for Section 8 purposes, follow this decision tree:
1) Does FMR $1050 (zip FY 2024) clear debt service on a $291,461 property?
It depends. The Fair Market Rent (FMR) of $1050 per month needs to cover the debt service, which includes mortgage payments, property taxes, insurance, and maintenance costs. For a $291,461 property, the monthly mortgage payment can vary widely based on interest rates and loan terms. At a conservative estimate of a 4% interest rate over 30 years, the mortgage payment would be approximately $1370 per month. This does not include property taxes, insurance, and maintenance, which could add another $200-$300 per month, making the total debt service around $1570-$1670 per month. Given that the FMR is $1050, it does not fully cover the estimated debt service without additional income sources.
2) Is market rent $907 (Census ACS) above, at, or below FMR?
The market rent of $907 is below the FMR of $1050. This suggests that Section 8 tenants would pay closer to the market rate, which is beneficial for landlords who might otherwise struggle to find tenants willing to pay the higher FMR.
3) Are 9.6% renters + N/A-day days on market enough demand?
No. With only 9.6% of the population being renters, there is limited demand for rental properties in Monroe, VA. Additionally, the lack of data on days on market (DOM) indicates either a very stable housing market or insufficient data to make an informed decision. A low percentage of renters combined with unknown DOM figures suggests that finding and retaining tenants might be challenging.
Based on these factors, the decision to purchase a property in ZIP 24574 for Section 8 purposes is not advisable unless the landlord can secure a property with significantly lower costs or has other means to cover the gap between FMR and debt service.
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.