Location: Boone County, WV | Metro: Boone County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
In ZIP 25093, the economics of Section 8 housing can be quite straightforward when you understand how the payments are structured. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $850. This figure is specifically tailored for this ZIP code, reflecting the unique rental dynamics within the area.
The SAFMR serves as the ceiling for what the government will pay on behalf of a tenant under the Section 8 program. However, the actual amount paid to landlords consists of two parts: the tenant's contribution and the government subsidy. Typically, tenants contribute about 30% of their adjusted income toward rent. For example, if a tenant has an adjusted income of $1,500 per month, they would pay approximately $450 towards rent.
The remainder of the rent is subsidized by the government, up to the SAFMR limit. In the case of a $850 SAFMR, if the tenant pays $450, the government would cover the difference, which is $400. It's important to note that the government also provides utility allowances, which can vary but generally add a few hundred dollars to the monthly payment.
Given that the local market rent data is currently unavailable, it's crucial to compare your rental rates against the SAFMR to ensure compliance with the program. If you charge above $850 for a two-bedroom unit, you won't receive additional funds from the government, leading to a potential surplus or gap depending on your pricing strategy.
To illustrate, if you charge $900 for a two-bedroom apartment, the government will still only reimburse up to $850. Thus, you would need the tenant to cover the remaining $50 out of pocket, which could be challenging if they are already paying 30% of their income. Conversely, if you charge below the SAFMR, say $800, you will receive the full amount from the tenant and the government, resulting in a surplus of $50.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 25093 depends on your rent setting. If you align your rent closely with the $850 SAFMR, you should expect minimal surplus or gap. However, if you deviate significantly from this rate, you will either have to accept a lower overall rental income or risk having tenants unable to cover the excess costs beyond their contribution.
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.