Location: Raleigh County, WV | Metro: Raleigh 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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $142,839 | 0.7% | D |
| 3BR | $1,380 | $224,027 | 0.62% | D |
| 4BR | $1,450 | $303,095 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 25918 (Shady Spring, WV) for Section 8 purposes, follow these steps:
Step 1: Calculate if the Fair Market Rent (FMR) of $880 can cover the debt service on a property valued at $210,121. This requires knowing the interest rate and loan terms. For a typical 30-year fixed-rate mortgage at 4%, the monthly payment would be approximately $1,027. The FMR of $880 does not cover this amount, leading to a no. However, if the landlord secures a lower interest rate or makes a larger down payment, reducing the monthly debt service to below $880, then the answer becomes yes.
Step 2: Compare the Census ACS reported market rent of $906 to the FMR of $880. Since the market rent is higher than the FMR, landlords will need to decide if they are willing to accept a slightly reduced rental income when participating in Section 8. If they are, the analysis moves forward. If not, the answer remains no.
Step 3: Assess the rental demand. In ZIP 25918, 8.6% of residents are renters, and the days on market (DOM) data is not available. Given the limited data, the decision hinges on the landlord's tolerance for risk. With only 8.6% of residents being renters, the demand is relatively low. If the landlord is comfortable with a low demand scenario and believes that the stable income from Section 8 tenants outweighs the potential risks, the answer is it depends. They must weigh the benefits of guaranteed rental income against the potential for slower property turnover.
In summary, purchasing a property in Shady Spring, WV for Section 8 investment is contingent upon the landlord's ability to secure a low-interest rate or make a significant down payment to ensure that the FMR of $880 covers the debt service. Additionally, they must be willing to accept a slightly lower rent compared to the market rate of $906. Lastly, the landlord needs to consider the low rental demand and the associated risks before making a final decision.
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.