It never hurts to start with the most simple spot- your home church(or your fiances).
Some churches do not charge their members for use of the church for weddings or use of the Christian life centers (reception hall) for receptions, and some churches do charge their members, but churches are usually a nice, budget-friendly option.
You might check out parks and rec locations and look beyond the Burg into smaller towns like Rustburg, Amherst, Bedford, Alta Vista, and even Brookneal (the community center - a red brick colonial-esque building- has a hall for a ceremony and a different hall for a reception- and a small gazebo outside- if you are interested, you can contact the town manager at email@example.com
Campbell Co Parks: http://www.co.campbell.va.us/depts/rec/Pages/parks.aspx
Amherst Co Parks: http://www.countyofamherst.com/department/division.php?fDD=23-182
Lynchburg City Parks (look on left for list):
Lynchburg Parks facility rentals: http://www.lynchburgva.gov/Index.aspx?page=475
You should be able to see what is available, price wise, for hotels just by going online, as August is not that far away.
Thankfully, your date is before freshman move in for the 4 universities so you won't be competing for hotel rooms with all those parents. :)
Which reminds me, check out those college campuses and see if there are any locations there that appeal to you. I know couples have been married at the Prayer Chapel at LU: http://www.hillcitybride.com/tag/liberty-university/
A link to outside the box thinking re: budget weddings:
juthurst has some excellent suggestions.
Lynchburg College & Randolph College both have really lovely campuses and offer some spaces for rental. These aren't always available when the colleges are in session, so that may depend on your wedding date.
Our reception was in the Aviary in Miller Park (Lynchburg), which is a lovely location. The rental fee was very reasonable, and the Lynchburg Parks & Rec dept. was very easy to work with.
The Aviary: http://www.lynchburgva.gov/Index.aspx?page=1229
Click on each tool to see a sample.