Location: Jefferson County, WV | Metro: Martinsburg, 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 | $890 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $214,754 | 0.57% | F |
| 3BR | $1,690 | $287,074 | 0.59% | F |
| 4BR | $1,920 | $354,952 | 0.54% | F |
| 5BR | $2,227 | $419,017 | 0.53% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 25404 (Martinsburg, WV) for Section 8 investments, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $1140 cover the debt service on a $284,871 property?
If yes: The FMR is sufficient to cover the debt service, making the investment viable from a financial standpoint.
If no: The FMR does not cover the debt service, which means the investment would not be financially sound without additional income sources or subsidies.
Step 2: How does the market rent ($1,652 ZORI) compare to the FMR?
If above: Market rents exceed the FMR, indicating that there is potential to earn higher rents from non-Section 8 tenants. This could be advantageous if you plan to diversify your tenant base beyond just Section 8 participants.
If at: Market rents match the FMR, suggesting that the property will attract primarily Section 8 tenants. This scenario is still viable but less flexible.
If below: Market rents are lower than the FMR, which might indicate an oversupply of Section 8 units or a weak rental market overall. In this case, the property's value is largely tied to Section 8 participation.
Step 3: Is there sufficient demand based on the percentage of renters (40.0%) and the number of days on the market (N/A - likely indicating low turnover or strong demand)?
If yes: With 40.0% of residents being renters and a low number of days on the market, there is strong demand for rental properties in this area. This makes it a good location for a Section 8 investment.
If no: The demand for rental properties is insufficient, which would make it difficult to fill vacancies or maintain occupancy levels. This would not be a recommended area for a Section 8 investment.
If it depends: The percentage of renters is adequate, but the lack of data on days on the market makes it hard to assess the overall demand. Investigate further into local vacancy rates and tenant stability to make a more informed decision.
In conclusion, ZIP 25404 (Martinsburg, WV) can be a suitable location for Section 8 investments if the FMR covers debt service and there is sufficient demand. However, the relationship between market rents and FMR is crucial in determining the flexibility and potential profitability of the investment.
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.