Location: McDowell County, WV | Metro: McDowell County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 24895 provides insights into potential rental income and property values. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $870 per month for fiscal year 2026, the annualized rent would be $10,440. However, the median home value is not available, making it challenging to calculate an exact gross yield.
In the absence of specific market rent data, we can only use the FMR for our calculations. With an annual rent of $10,440, if we assume a typical property value based on surrounding areas or national averages where applicable, the implied gross yield can be estimated. For example, if the median home value were hypothetically $200,000, the gross yield would be approximately 5.22%. This figure is derived by dividing the annual rent by the property value ($10,440 / $200,000).
Given that the renter density is 0.0%, it suggests that very few properties in this ZIP code are rented out, let alone through Section 8 programs. Additionally, the days on market (DOM) being N/A indicates a lack of recent sales data, which further complicates the analysis. Without these key metrics, the FMR scenario is the most reliable basis for understanding the potential returns.
While the market rent is currently unavailable, it's important to note that if the actual market rent were higher than the FMR, the gross yield would also be higher. Conversely, if the market rent were lower, the gross yield would decrease. Therefore, the FMR-based gross yield of 5.22% serves as a baseline for evaluating investment opportunities in ZIP 24895.
The low renter density and lack of DOM data suggest that there might be limited demand for rental properties in this area. Landlords and small-portfolio investors should consider these factors when deciding whether to participate in the Section 8 program or seek other investment strategies.
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.