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)
To derive the Section 8 cap-rate picture for ZIP code 25152, we must first understand the components involved: the Fair Market Rent (FMR) for a two-bedroom apartment, the median home value, and the current market rent. For FY 2024, the FMR for a two-bedroom apartment in ZIP 25152 is $870 per month. This translates to an annual rental income of $10,440 if rented under the Section 8 program.
The median home value for ZIP 25152 is not available, which complicates the calculation of the gross yield based on property value. However, assuming a hypothetical median home value of $150,000 (for illustration purposes), the gross yield would be calculated as follows:
$10,440 / $150,000 = 6.96%
This implies that the gross yield for a property rented under Section 8 would be 6.96%, based on the hypothetical median home value. In reality, without a specific median home value, this figure cannot be accurately determined for ZIP 25152.
The current market rent for the area is also not available, making it impossible to calculate a precise gross yield for market-rate rentals. If the market rent were higher than the FMR, the gross yield would naturally be greater. For example, if the market rent were $1,200 per month, the annual rental income would be $14,400, leading to a gross yield of:
$14,400 / $150,000 = 9.6%
This scenario assumes a higher market rent and a median home value of $150,000, resulting in a gross yield of 9.6%. Comparing the two yields, the market-rate rental scenario provides a higher gross yield than the Section 8 scenario.
Given the 0.0% renter density in ZIP 25152 and the unavailability of the days-on-market (DOM) statistic, it is challenging to determine which scenario is more realistic. However, the lack of renter density suggests a lower demand for rentals, which might make market-rate rentals less feasible. Therefore, the Section 8 scenario, with its guaranteed rental income, appears more practical for investors looking to secure steady cash flow.
In conclusion, while the exact figures for median home value and market rent are unavailable, the gross yield comparison between the Section 8 and market-rate rental scenarios shows that the latter offers a higher potential return. Yet, considering the low renter density, the Section 8 option is likely the safer bet for landlords and small-portfolio investors in ZIP 25152.
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.