Location: Charleston, WV | Metro: Charleston, 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 | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $46,538 | 2.49% | A+ |
| 3BR | $1,470 | $74,253 | 1.98% | A+ |
| 4BR | $1,520 | $101,024 | 1.5% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 25387 in Charleston, WV, is a modest residential area with a total population of 4,708. Approximately 34.6% of residents are renters, indicating a significant portion of the community relies on rental housing. The median household income here is $43,063, which is relatively low compared to national averages, suggesting that many residents might be seeking affordable housing options such as those supported by Section 8 vouchers. The median home value stands at $57,423, reflecting the overall affordability of the neighborhood.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP 25387 in fiscal year 2024 is set at $1,000. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent. In contrast, the market rent as per the Census ACS data is $807, indicating that there is a discrepancy between the FMR and actual market rates. This gap presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR to cover costs and potentially generate a profit.
Given these economic conditions, ZIP 25387 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable income provided by the government-subsidized FMR ensures consistent cash flow without the need for active management. Meanwhile, hands-on investors can capitalize on the difference between FMR and market rent to either improve properties and increase their value or manage multiple units effectively to maximize returns. However, it's important to note that the success of investment strategies will depend on understanding the local market dynamics and compliance with HUD regulations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.