Location: Mason County, WV | Metro: Putnam County, WV HUD Metro FMR Area
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 | $970 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $144,904 | 0.89% | C |
| 3BR | $1,650 | $201,434 | 0.82% | C |
| 4BR | $1,750 | $252,045 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 25123 in Leon, WV, provides insight into the potential investment returns for landlords and small-portfolio investors. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $1060 per month for FY 2024. Annualizing this figure yields a monthly rental income of $12,720. In contrast, the market rent for a similar unit, based on Census ACS data, stands at $866 per month, translating to an annual rental income of $10,392.
To derive the implied gross yield, we divide the annual rental income by the median home value of $166,099. For the FMR scenario, the gross yield is approximately 7.66%, calculated as $12,720 divided by $166,099. Meanwhile, using the market rent figure, the gross yield drops to about 6.26%. These figures represent the raw percentage return on investment without factoring in operating expenses or vacancies, providing a baseline for further analysis.
Given the renter density of 23.7% in Leon, WV, it's important to assess which scenario is more likely to materialize. The FMR of $1060 is a government-set benchmark intended to ensure affordable housing options are available. However, with a lower renter density, it suggests that a significant portion of the population owns homes rather than renting, which could affect demand for rental properties. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data, making it challenging to predict how quickly units might be leased at either rate.
In reality, achieving the higher FMR rate might be difficult due to the limited rental market presence. Therefore, the market rent of $866 per month, with its corresponding gross yield of 6.26%, is likely a more practical expectation for landlords and investors in this area. While the 7.66% gross yield from the FMR scenario is enticing, the actual performance may be closer to the market rent scenario due to local rental dynamics and the overall housing ownership trend.
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.