Location: Wyoming County, WV | Metro: Wyoming County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 24847 reveals a complex rental market scenario. To begin with, the annualized Fair Market Rent (FMR) for a 2-bedroom unit in the metro area for fiscal year 2026 is set at $870. This figure is critical for understanding potential rental income under the Section 8 program.
However, the median home value for ZIP 24847 is currently unavailable, which complicates the calculation of a precise cap rate. The cap rate is derived by dividing the net operating income (NOI) by the property's value. Without knowing the median home value, we cannot accurately calculate the cap rate for this area.
To derive an implied gross yield, we must consider the FMR and compare it to the hypothetical market rent. In this case, the market rent is also not available, suggesting that the local rental market may be underdeveloped or not well-documented. Given the FMR of $870, the implied gross yield would be based solely on the rental income from Section 8 tenants. However, this yield does not account for the typical expenses associated with owning and managing a rental property, such as maintenance, insurance, and property taxes.
In contrast, if the market rent were known and higher than the FMR, the implied gross yield would likely be better. For instance, if the market rent for a similar 2-bedroom unit was $1,200 annually, the gross yield would be significantly higher than when relying solely on the FMR. This would provide a more attractive investment opportunity for landlords and small-portfolio investors looking to maximize their returns.
The lack of available data on median home values and market rents makes it difficult to provide a concrete cap rate for ZIP 24847. Additionally, the 0.0% renter density indicates that very few residents in this area are likely to be Section 8 participants, which could limit the pool of potential tenants. The Days on Market (DOM) being listed as N/A further suggests that there is limited activity in the rental market, making it challenging to predict how quickly a property might be leased.
Given these factors, the scenario where market rent is higher than the FMR is more realistic for generating a positive cash flow. Landlords should be cautious about relying solely on the FMR for their investment calculations, as the actual rental income may be lower than anticipated due to the low density of renters eligible for the Section 8 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.