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Cap Rate Analysis: Lynchburg, VA

Investment metrics, interactive calculators, and data-driven analysis for Lynchburg rental properties.

Moderate — source deals carefully
Based on $205,000 median price and $1,120/mo median rent
Est. Cap Rate
4.60%
1% Rule
0.55%
Fails
GRM
15.3x
Price / Income
4.6x

Market Data

Median Home Price$205,000
Median Monthly Rent$1,120
Property Tax Rate0.8%
Population84,000
Population Growth0.5% / yr
Median Household Income$44,600
Vacancy Rate5.5%
Annual Appreciation2.6%

Cap Rate Calculator — Lynchburg

Pre-filled with Lynchburg medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.8% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.81%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,817
net operating income
Gross Rent Multiplier
15.3x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$651
before debt service
Annual Breakdown
Gross Rental Income$13,440
Less Vacancy−$739
Effective Income$12,701
Less Operating Expenses−$4,884
Net Operating Income$7,817

Cash-on-Cash Return — Lynchburg

Factor in financing to see your actual return on invested capital in Lynchburg.

$
$51,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.37%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$57,400
$51,250 down + $6,150 closing
Monthly Mortgage
$1,002
on $154K loan
Monthly Cash Flow
$-352
after all expenses
Annual Cash Flow
$-4,228
before taxes
Cash Flow Breakdown
Monthly Rent$1,120
Less Expenses−$470
Less Mortgage−$1,002
Monthly Cash Flow$-352

Is Lynchburg a Good Place to Invest in Rental Property?

Lynchburg, VA has a population of 84,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $205,000 paired with median rents of $1,120/mo produces an estimated cap rate of 4.60%.

Property taxes at 0.8% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $44,600. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Lynchburg presents moderate opportunities. Cap rates near 4.60% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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