Location: Monroe County, WV | Metro: Monroe County, WV
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 | $710 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $165,258 | 0.57% | F |
| 3BR | $1,320 | $196,313 | 0.67% | D |
| 4BR | $1,430 | $268,765 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Union, WV (ZIP 24983), might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns directly with the available data.
Will Fair Market Rent (FMR) of $870 (metro FY 2026) cover the mortgage on a $186,654 home?
The FMR of $870 per month is the maximum amount that HUD will pay for a rental unit in the area. To determine if this covers the mortgage, we need to calculate the monthly mortgage payment on a $186,654 home. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly principal and interest payment would be approximately $912. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of about $42 per month. However, it's important to note that this calculation does not include property taxes, insurance, maintenance, or other costs associated with owning a rental property.
Is there enough renter demand at 12.9%?
The 12.9% figure represents the percentage of households renting in the area. While this number is relatively low compared to national averages, it suggests that there is still a significant portion of the population seeking rental housing. The challenge lies in whether this demand can be met effectively through the Section 8 program. The data does not provide a direct measure of the number of Section 8 eligible tenants or the waiting list lengths, which would give a clearer picture of demand within the program. Therefore, while there is some renter demand, the specifics of how much of this demand is covered by Section 8 eligibility remain unclear.
Will vouchers keep pace with $615 market rents?
The average market rent of $615 is below the FMR of $870, indicating that Section 8 vouchers could potentially cover the majority of the rent for most units. However, the question of whether voucher amounts will increase to match rising market rents is critical. According to HUD guidelines, FMRs are adjusted annually based on changes in housing costs, but the actual pace of these adjustments may lag behind market conditions. Investors should monitor local HUD announcements and trends in market rents closely to anticipate any gaps between voucher payments and market rates.
In summary, while Union, WV offers opportunities for Section 8 investment, the data highlights potential challenges such as the FMR not fully covering mortgage payments and uncertainties around the precise level of tenant demand within the program. Vouchers are currently sufficient to cover market rents, but vigilance is required to ensure they keep up with future increases.
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.