Location: Winchester, VA | Metro: Winchester, VA-WV MSA
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 26761 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1110 per month. This annualizes to $13,320 per year, implying a gross yield of approximately 5.35% when compared to the median home value of $249,572.
To calculate the gross yield, we use the formula:
Gross Yield = (Annualized Rent / Median Home Value) * 100
In this case:
However, the market rent is listed as N/A, which means there is insufficient data to provide an accurate comparison. In such cases, it's important to consider the local rental market dynamics and the percentage of renters in the area, which stands at 24.3%. Given this relatively low renter density, it suggests that a significant portion of the housing stock is owner-occupied, which could impact the availability of rental properties and the competitiveness of the market.
The Days on Market (DOM) figure is also noted as N/A, which indicates that there isn't enough recent transaction data to determine how quickly properties are typically rented out in this ZIP code. This lack of information makes it challenging to predict the exact market rent, but it does highlight the importance of understanding the local real estate trends and the potential challenges in finding tenants.
Based on the available data, the Section 8 scenario presents a clear and calculable gross yield, whereas the market rent scenario remains speculative due to the absence of specific figures. For investors looking to enter the ZIP 26761 market, the Section 8 program offers a stable and predictable income source, though the gross yield of 5.35% may be lower than what they might achieve in a robust market rent environment.
Given the limited data on market rents and the low renter density, the Section 8 option appears to be more realistic for securing a steady stream of rental income. However, the decision should also factor in the local demand for Section 8 units and the administrative requirements associated with participating in the program.
Data Sources: FMR data from HUD (2027). 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.