Location: Charleston, WV | Metro: Charleston, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 25102 reveals some key insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1000 per month. This annualizes to $12,000 per year, assuming consistent occupancy. Given that the median home value in this area is not available, we must rely on other metrics to infer the gross yield.
In the scenario where the median home value is not known, the gross yield can be calculated using the FMR. If we assume an average home value based on comparable ZIP codes, let's say around $150,000, the gross yield would be approximately 8%. This calculation is derived from the annualized rent of $12,000 divided by the assumed home value of $150,000. However, this figure is speculative due to the lack of specific median home value data.
The market rent for ZIP 25102 is also not available, which makes it challenging to provide a direct comparison. However, if we consider the typical relationship between FMR and market rents, where market rents often exceed FMR, we might infer a higher gross yield under market conditions. Assuming a market rent of $1,200 per month, the annualized market rent would be $14,400. With the same assumed home value of $150,000, the gross yield would be approximately 9.6%, suggesting a better return on investment compared to the FMR scenario.
Given the 3.8% renter density in ZIP 25102, it is important to note that this indicates a relatively low demand for rental properties. This could affect the occupancy rates and thus the actual yield. Additionally, the Days on Market (DOM) being not available means we cannot accurately gauge how quickly properties are rented out, which is crucial for cash flow planning.
The FMR-based gross yield of 8% is more conservative and likely closer to reality given the low renter density. However, if market conditions allow for rents above FMR, the 9.6% gross yield becomes a possibility. Investors should carefully assess local market dynamics and consider the impact of renter density on long-term profitability before making investment decisions.
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.