Location: Boone County, WV | Metro: Boone County, WV HUD Metro FMR Area
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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $86,650 | 1.2% | A |
| 3BR | $1,380 | $152,264 | 0.91% | C |
| 4BR | $1,740 | $194,288 | 0.9% | C |
U.S. Census Bureau data (2024)
The real estate market in ZIP 25130, Madison, WV, presents a unique setup for both landlords and small-portfolio investors. With a median home value of $121,408, the area stands out as an affordable option for investment. However, the absence of percentage reductions in listings and the median days on market (DOM) indicates a stable market without significant pressure from distressed sales or prolonged listing periods. This stability suggests that landlords and investors can maintain their current pricing strategies without needing to adjust significantly due to market volatility.
On the rental side, the Fair Market Rent (FMR) for ZIP 25130 is set at $900 for fiscal year 2024, while the current market average, according to Census ACS, is $1,016. This discrepancy between the FMR and the actual market rent signals a potential opportunity for landlords to attract tenants who qualify for Section 8 subsidies, as the market rents exceed the FMR. Landlords should be aware that maintaining rents above the FMR could limit the pool of eligible tenants, but it also reflects the local demand and willingness to pay higher rents.
For long-term investors, the setup in ZIP 25130 implies a cautious approach to expectations regarding property appreciation. Given the current median home values and the limited data on recent price movements, there is little evidence to support rapid appreciation in the near future. Instead, the focus should be on steady cash flow from rental income rather than capital gains. The relatively low median home value combined with the higher market rents provides a solid foundation for generating positive cash flow, making it an attractive option for those seeking consistent returns.
Investors should also consider the broader economic context of the region. While the specific data points provided do not include employment rates or industry growth, the overall affordability of housing and the rental dynamics suggest a market that is likely to remain stable, if not slowly appreciating, over the next 12-24 months. This stability is crucial for long-hold investors who aim to build wealth through real estate over extended periods.
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.