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 | $930 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $195,119 | 0.55% | F |
| 3BR | $1,480 | $286,596 | 0.52% | F |
| 4BR | $1,580 | $384,833 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 Housing Choice Voucher program offers a significant opportunity for landlords and small-portfolio investors in ZIP code 24588, Rustburg, VA, within the Lynchburg, VA MSA metro. According to HUD's Fair Market Rent (FMR) data for fiscal year 2024, the FMR for ZIP 24588 is set at $910 per month. This figure represents the maximum amount landlords can charge for a unit to be eligible under the voucher program.
In contrast, the Census ACS reports the market rent for the same area at $697 per month. This discrepancy suggests that voucher tenants can cashflow at the FMR rate, providing a substantial margin over typical market rents. The median home value in ZIP 24588 stands at $279,815, which translates to a rent-to-price ratio of approximately 0.25%, indicating that rental income is relatively low compared to property values.
The dynamics of rent versus buy in Rustburg do not significantly impact the decision-making process for investors, given the N/A-day median Days on Market (DOM) and the minimal 0.1% share of homes experiencing price cuts. These factors imply a stable housing market where properties remain competitive without frequent price adjustments.
The strongest angle for investors in this market is cashflow. With the HUD FMR of $910 being notably higher than the market rent of $697, landlords can secure a steady income stream that outpaces local market rates, making Section 8 properties particularly attractive for those seeking reliable returns.
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.