Location: Winchester, VA | Metro: Morgan 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 | $1,020 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $211,736 | 0.53% | F |
| 2BR | $1,420 | $257,877 | 0.55% | F |
| 3BR | $1,770 | $349,966 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 25422, located in Winchester, VA-WV MSA, reveals several key points for potential Section 8 real-estate investments.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 25422 in fiscal year 2024 is set at $1110. However, the market rent data is currently unavailable. Without a comparison to market rates, it's challenging to definitively state if the rent math aligns favorably with investment goals. Landlords should consider this uncertainty when making their decision.
Regarding the affordability of acquisitions, the median home value in ZIP 25422 stands at $263,283. This figure provides a benchmark for potential purchase costs. Unfortunately, the Days on Market (DOM) and the percentage of homes that experienced price cuts are also missing, which would have helped gauge how quickly homes sell and the level of competition in the market. Despite these gaps, the median home value offers a clear starting point for assessing the cost of entry into the market.
The third question concerns tenant demand. With a total population of 1,463, the ZIP code has a surprisingly low 0.0% renter share. This indicates that nearly all residents are homeowners, which poses a significant challenge for landlords seeking tenants. The lack of renters suggests a limited pool of potential Section 8 participants, making it difficult to sustain rental income.
In conclusion, while the Fair Market Rent of $1110 provides a stable income floor for Section 8 properties, the absence of market rent data complicates the financial assessment. The median home value of $263,283 suggests a moderate cost for acquisitions, but without DOM and price-cut data, the ease of selling homes remains unclear. Most critically, the 0.0% renter share in a small population of 1,463 residents severely limits the potential tenant base. Given these factors, ZIP 25422 presents a challenging environment for Section 8 investments due to the low demand for rental housing.
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.