Location: Fayette County, WV | Metro: Fayette 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $135,559 | 0.77% | D |
| 3BR | $1,360 | $213,166 | 0.64% | D |
| 4BR | $1,740 | $313,607 | 0.55% | F |
U.S. Census Bureau data (2024)
To integrate ZIP 25840, located in Fayetteville, WV, into a Section 8 portfolio strategy, one must consider its unique characteristics. This area is best positioned as a cash-flow anchor. The key reason lies in the substantial spread between the Fair Market Rent (FMR) set by HUD for the fiscal year 2024 and the current market rent.
The HUD FMR for ZIP 25840 is $1080 for a single-bedroom unit, while the market rent stands at $857. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to the local market rates. By anchoring your portfolio with properties in this ZIP code, you ensure steady and reliable cash flow, which is essential for maintaining financial stability and covering operational costs.
Fayetteville's median home value is $187,344, indicating that the housing stock is relatively affordable. This affordability factor supports the higher FMR payout by the government, as it ensures that low-income families have access to decent housing without overburdening landlords with below-market rents. The difference between the FMR and the market rent provides a cushion that can help landlords manage their investments effectively, especially when dealing with the maintenance and management costs associated with rental properties.
Additionally, the renter share in ZIP 25840 is 18.1%, which suggests a moderate demand for rental units. While this percentage is not exceptionally high, it does indicate a stable rental market. The median income of $67,628 further supports the idea that this ZIP code can serve as a solid cash-flow anchor. With a balanced mix of renters and homeowners, there is less risk of significant market fluctuations that could impact rental income.
In conclusion, ZIP 25840 should be considered as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed higher rental income from HUD, combined with the stable local market conditions, makes it an ideal choice for landlords and small-portfolio investors looking to secure consistent returns on their 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.