Section 8 Fair Market Rent (FMR) for ZIP 25827 - 2027

Investment Score for ZIP 25827

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$760
2 Bedrooms	$970
3 Bedrooms	$1,340
4 Bedrooms	$1,400
5 Bedrooms	$1,624
6 Bedrooms	$1,819
7 Bedrooms	$1,965
8 Bedrooms	$2,063

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$970	$101,486	0.96%	C
3BR	$1,340	$169,171	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the analysis for ZIP code 25827 in Midway, WV, reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 25827 is set at $850 for fiscal year 2024. However, the specific market rent figures for this area are not readily available, which complicates a direct comparison. Given that the FMR is often lower than the market rent, especially in areas where the economy is stable or growing, it's reasonable to infer that landlords in ZIP 25827 might face challenges when accepting Section 8 tenants. The median home value in Midway, WV, is $132,395, indicating a moderate housing market. With a median income of $41,198, many residents may rely on government assistance to afford housing.

The FMR of $850 is likely below the market rent, creating a scenario where landlords accept Section 8 tenants at a rate that could be significantly lower than what they could charge in the open market. This difference represents a potential financial loss for landlords.

In Midway, WV, where 23.0% of residents are renters, the reliance on affordable housing options such as Section 8 vouchers is significant. While this program ensures steady rental income, it may not match the higher rates achievable in a competitive market environment.

To illustrate the impact, assume the market rent is $1,000 per month. The gap between the FMR ($850) and market rent ($1,000) would be $150, or 15%. This means landlords could potentially earn $150 less per unit each month by accepting Section 8 tenants, translating into an annual loss of $1,800 per unit.

Landlords must carefully consider the trade-offs. While Section 8 provides consistent income and tenant reliability, the lower rent rates may reduce overall portfolio yields. Conversely, in a highly competitive market, landlords might struggle to fill units without offering more affordable rates, making Section 8 a viable option despite the lower returns.

In conclusion, the decision to participate in the Section 8 program should be made with a clear understanding of the financial implications and the local housing market dynamics. The gap between FMR and market rent, while not precisely quantified here, suggests a need for careful analysis of each investment opportunity.

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.