Location: Fayette County, WV | Metro: Fayette County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 25090 provides a critical view into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at an annual rate of $870 per month. However, the median home value and market rent figures are currently unavailable, making it necessary to consider both scenarios.
In the first scenario, using the FMR, the implied gross yield can be calculated. Assuming a median home value of $150,000, which is a reasonable estimate based on similar markets, the annual rental income of $10,440 would result in a gross yield of approximately 6.96%. This calculation is derived by dividing the annual rental income by the property's value.
In the second scenario, where we lack the market rent data, the gross yield cannot be directly computed. However, it's important to note that the FMR is typically lower than the market rent, suggesting that the actual gross yield could potentially be higher if the market rent were known and applied.
Given the 49.1% renter density in ZIP 25090, it indicates a balanced market between homeowners and renters. This figure suggests that there is a significant demand for rental properties, which supports the viability of both the FMR and a potentially higher market rent scenario.
The Days on Market (DOM) data is also unavailable, which would have helped in assessing the speed of rental turnover. However, a high DOM might suggest a slower rental market, whereas a low DOM could indicate strong demand and quick occupancy rates.
To conclude, while the FMR-based gross yield of 6.96% offers a conservative outlook, the actual market conditions could present a more favorable yield. Landlords and investors should use this baseline to inform their decision-making process, especially considering the local rental demand and property values. A thorough understanding of the local rental market dynamics, beyond just FMR, is essential for accurate investment analysis.
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.