Location: Winchester, VA | Metro: Winchester, VA-WV MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 25437 in Romney, West Virginia, presents a mixed scenario for landlords and small-portfolio investors. Based on the available data, let's analyze the market along the two axes: yield and stability.
Yield: The Fair Market Rent (FMR) for ZIP 25437 in fiscal year 2024 is $1110, which is lower than the average monthly rent of $1278. The median home value stands at $285,780, while the average rent-to-price ratio is 18.6:1. This ZIP fails the 1% rule, indicating that the rental income is less than 1% of the property's value. However, the gross yield is 5.4%, which is decent but must be weighed against the current 30-year fixed mortgage rate of 6.30%. The negative leverage suggests that financing reduces the cash-on-cash return below the cap rate of 3.5%. Therefore, the yield is moderate, offering a reasonable but not exceptional return on investment.
Stability: With 26.4% of residents being renters, the market has a relatively stable tenant base. Unfortunately, the median income is not available, which complicates assessing the ability of tenants to consistently pay rent. The vacancy rate is notably high at 56.4%, which is significantly above national norms and could pose challenges for maintaining steady cash flow. Additionally, the 5-year Compound Annual Growth Rate (CAGR) for home values is +7.0%, showing strong appreciation potential. However, the recent decline in home values by -1.0% over the last year indicates some volatility.
In conclusion, ZIP 25437 leans towards a steady-cashflow zone. While the yield is moderate, the long-term appreciation potential is strong, making it a viable option for buy-and-hold investors. The high vacancy rate suggests that active management is necessary to ensure consistent occupancy and cash flow. Despite the challenges, the overall investment appeal is rated at 3.0/5, indicating a workable market for those willing to engage in hands-on property management.
Data Sources: FMR data from HUD (2027). 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.