Location: Winchester, VA | Metro: Winchester, VA-WV MSA
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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $333,671 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 25444 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Here's a detailed look at those concerns, using the available data.
Will FMR $1110 (zip FY 2024) cover the mortgage on a $288,767 home?
The Fair Market Rent (FMR) for ZIP 25444 in fiscal year 2024 is set at $1110. This figure represents the maximum amount that a landlord can charge for a property under the Section 8 program. However, it does not directly translate to the ability to cover a mortgage on a home valued at $288,767. To determine if the FMR can cover the mortgage, one must consider the interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment for a $288,767 home would be approximately $1530. Clearly, the FMR of $1110 falls short of covering the mortgage payment, indicating that landlords will need additional income sources or must consider properties with lower purchase prices to remain financially viable.
Is there enough renter demand at 0.5%?
The data suggests that the percentage of renters participating in the Section 8 program in ZIP 25444 is only 0.5%. This low participation rate raises questions about the overall demand for subsidized housing in the area. A 0.5% participation rate implies that the majority of potential tenants do not qualify for or prefer other forms of housing. For landlords, this means that while Section 8 can provide a steady stream of income, it may not be sufficient to sustain a large portfolio. It also suggests that landlords should diversify their tenant base to include non-Section 8 renters to mitigate risks associated with low demand.
Will vouchers keep pace with N/A market rents?
The data does not provide specific information on the current market rents in ZIP 25444, which makes it difficult to assess whether voucher amounts will keep up with the local rental market. Without this data, it's impossible to definitively say whether the voucher system will adequately compensate landlords for market-level rents. However, historically, voucher amounts tend to lag behind market rents due to annual adjustments that do not always reflect rapid changes in the local economy. Landlords should prepare for potential gaps between voucher payments and market rents, possibly by setting aside reserves or seeking other revenue streams.
In conclusion, while ZIP 25444 presents opportunities for landlords interested in the Section 8 program, it also poses challenges such as insufficient FMR to cover mortgage costs and limited demand for subsidized housing. The lack of data on current market rents adds another layer of uncertainty. These points highlight the need for careful financial planning and diversification when investing in this ZIP code.
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.