Location: Nicholas County, WV | Metro: Fayette County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 25059 is based on the disparity between the Fair Market Rent (FMR) set at $870 for fiscal year 2024 and the lack of available current market rent data. This gap means that landlords can potentially benefit from the government's rental subsidy program, which aims to provide affordable housing options for low-income families.
In ZIP 25059, where only 9.9% of residents are renters, the scarcity of rental units makes it an attractive market for those willing to accept Section 8 vouchers. The median income stands at $105,920, indicating a relatively strong economic base, but without a median home value, we cannot fully assess the local property market dynamics. However, the FMR figure serves as a critical benchmark for rental properties that participate in the Section 8 program.
Given the absence of current market rent data, we cannot calculate the exact percentage gap between the FMR and market rents. But the fact remains that if market rents exceed $870, landlords accepting Section 8 vouchers will be renting below the open-market rate. This scenario could lead to lower yields compared to what could be earned by renting to non-voucher tenants at market rates. Conversely, if the market rents are lower than the FMR, landlords would be leasing their properties above market rates, making it a yield play due to the guaranteed income from the vouchers.
The decision to accept Section 8 vouchers should be weighed against the potential for higher yields from market-rate rentals. Landlords must consider the administrative overhead associated with the program, including the application process, compliance with HUD standards, and the possibility of slower rent collection cycles. Despite these challenges, the stability of rental income provided by the Section 8 program can be particularly appealing in a low-renter ZIP code like 25059, where finding reliable tenants might otherwise prove difficult.
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.