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Lynchburg vs Fredericksburg for Rental Property Investing

Side-by-side comparison of Lynchburg, VA and Fredericksburg, VA — cap rates, rent, prices, and investment metrics.

Fredericksburg wins 4–3 across key metrics
Lynchburg leads on cash flow (4.60% vs 3.69% cap rate) · Fredericksburg leads on population growth
Metric
Lynchburg, VA
Fredericksburg, VA
Est. Cap Rate
4.60%
3.69%
Median Home Price
$205,000
$345,000
Median Monthly Rent
$1,120
$1,580
1% Rule
0.55%
0.46%
GRM
15.3x
18.2x
Price / Income
4.6x
5.9x
Property Tax Rate
0.8%
0.76%
Vacancy Rate
5.5%
4.5%
Population Growth
0.5% / yr
1.5% / yr
Annual Appreciation
2.6%
3.2%
Population
84,000
32,000
Median Income
$44,600
$58,200

Lynchburg vs Fredericksburg: Which Is Better for Investors?

Cash flow: Lynchburg has the edge with an estimated cap rate of 4.60% compared to Fredericksburg's 3.69%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $205,000 in Lynchburg vs $345,000 in Fredericksburg, while rents come in at $1,120/mo and $1,580/mo respectively.

Growth & appreciation: Fredericksburg is growing faster at 1.5% annually vs Lynchburg's 0.5%. Fredericksburg leads on home value appreciation at 3.2% per year.

Costs & risk: Property taxes are 0.8% in Lynchburg vs 0.76% in Fredericksburg. Vacancy rates of 5.5% and 4.5% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Fredericksburg edges out Lynchburg on most key metrics. While cap rates are moderate at 3.69%, Fredericksburg's overall profile is stronger. Use our free calculators to model specific deals in Lynchburg or Fredericksburg.

Lynchburg, VA
4.60% cap rate · $205,000 median · $1,120/mo
Full analysis →
Fredericksburg, VA
3.69% cap rate · $345,000 median · $1,580/mo
Full analysis →
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