Section 8 Fair Market Rent (FMR) for ZIP 26554 - 2027

Investment Score for ZIP 26554

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	$840
1 Bedroom	$940
2 Bedrooms	$1,150
3 Bedrooms	$1,430
4 Bedrooms	$1,910
5 Bedrooms	$2,216
6 Bedrooms	$2,482
7 Bedrooms	$2,681
8 Bedrooms	$2,815

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
1BR	$940	$83,251	1.13%	B
2BR	$1,150	$132,105	0.87%	C
3BR	$1,430	$221,656	0.65%	D
4BR	$1,910	$299,155	0.64%	D
5BR	$2,216	$344,792	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 26554 (Pleasant Valley, WV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 26554 is set by HUD for 2026, with the following figures: - 0BR: $800 - 1BR: $910 - 2BR: $1090 - 3BR: $1340 - 4BR: $1750 To understand how these FMRs compare to actual rents, we need to consider the median household income of $69,712. The FMR for a 2BR unit represents 18.8% of the median income, which is a reasonable percentage for rent affordability. However, the actual rents might be higher or lower depending on the local market conditions. Given that the occupancy rate is 90.2%, it suggests that there is a strong demand for rental properties in the area. This could mean that landlords might charge rents above the FMR, especially if they have a shortage of units. For voucher holders, the constraints are significant because the FMR is the maximum amount that can be paid by the government towards rent. If actual rents exceed these amounts, voucher holders would need to cover the difference out-of-pocket, which could be challenging given their income levels. #### Affordability & Renter Profile The population of Pleasant Valley is 42,118, with 26.8% of households being renters. This indicates a moderate rental market where approximately 11,290 households are renters. Given the median household income of $69,712, the average renter would likely struggle to afford a 2BR unit priced at the Zillow median of $125,113, considering the price-to-FMR ratio is 9.6x. This high ratio suggests that property values are significantly higher than what the typical renter can afford based on the FMR. The market appears to be relatively tight, with a high occupancy rate and a significant portion of the population renting. This means that there is a strong demand for rental properties, but the supply might not meet the needs of all renters, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the key question is whether the FMR provides enough cash flow to make a property viable. Let's break down the potential cash flow for a 2BR unit: - FMR for 2BR: $1090 - Zillow median price for 2BR: $125,113 Assuming a mortgage rate of 5% and a 20% down payment, the monthly mortgage payment for a 2BR unit would be approximately $545. This leaves a potential net cash flow of $545 per month before accounting for other expenses such as maintenance, utilities, and property taxes. The investment grade for this ZIP code would depend on the overall financial health of the property, including vacancy rates, operating costs, and the ability to attract and retain tenants. Given the high occupancy rate and the strong demand for rental properties, the risk of vacancy is relatively low. However, the high price-to-FMR ratio suggests that properties might be overvalued relative to their rental potential, which could impact long-term profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have FMRs of $800 and $910 respectively, which are more aligned with the typical renter's budget. A 0BR unit rented at $800 would provide a better cash flow margin compared to a 2BR unit rented at $1090, especially when considering the high purchase price of $125,113 for a 2BR unit. 2. **Consider Rental Assistance Programs**: Since 26.8% of households are renters and many might rely on Section 8 vouchers, it is crucial to ensure that properties are eligible for these programs. This includes meeting the required standards for housing quality and ensuring that the rent is within the FMR limits. Investors should also be aware of the administrative requirements and potential delays associated with rental assistance programs. 3. **Monitor Local Market Conditions**: While the national trends might suggest a certain level of demand, local conditions can vary. Investors should keep an eye on the local job market, population growth, and any new developments that could affect the rental landscape. Additionally, understanding the local competition and pricing strategies will help in setting realistic expectations for cash flow and returns. #### Bottom Line For Section 8-focused investors, the recommendation is to **Hold**. The high price-to-FMR ratio makes it challenging to achieve positive cash flow on larger units like 2BR or 3BR, especially given the high purchase prices. However, smaller units like 0BR and 1BR could still offer some opportunities for positive cash flow. Investors should carefully evaluate the local market conditions and ensure that their properties meet the necessary standards for rental assistance programs. Overall, while there is a strong rental market, the high property values relative to the FMR suggest that caution is warranted.

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.