Location: Fayette County, WV | Metro: Fayette County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,250 |
| 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)
23.7% of residents in ZIP 25186 are renters, indicating a significant portion of the population that could benefit from affordable housing options. The Fair Market Rent (FMR) for the area, set at $850 for zip FY 2024, serves as a benchmark for rental properties eligible under the Section 8 program. This figure is notably higher than the $663 average market rent reported by the Census ACS, suggesting that landlords participating in Section 8 can expect to receive above-average rental income. Despite the high rental demand, the median income in ZIP 25186 stands at $47,563, which is below the national average, underscoring the need for assistance programs like Section 8. The lack of data on median home values and days on market (DOM) suggests a limited supply of single-family homes, potentially favoring multi-unit investments. Additionally, the absence of a percentage for price-cut share indicates that there might be fewer distressed sales, leading to a more stable investment environment. Given these factors, landlords and small-portfolio investors should consider the benefits of Section 8 participation, particularly the guaranteed income stream and reduced vacancy risk.
The FMR of $850 provides a clear guideline for setting rental rates that are both competitive and aligned with government standards. Landlords who set their rents at this level or slightly below can attract tenants who qualify for Section 8 vouchers, ensuring steady occupancy. Furthermore, the disparity between the FMR and the market rent of $663 highlights the potential for higher returns compared to the local average. However, it's important to note that the median income of $47,563 is relatively low, which means that tenants may have limited financial flexibility beyond their voucher amount. Therefore, landlords must be prepared to manage properties effectively to maintain profitability.
Investors looking to enter the ZIP 25186 market should focus on multifamily properties due to the high renter share and the limited availability of single-family homes. These investments align well with the needs of the community and offer opportunities for consistent cash flow. Moreover, the absence of data on DOM and price-cut share suggests a robust and less volatile market, which is favorable for long-term investment strategies. In conclusion, while the median income in ZIP 25186 is lower than desired, the combination of a high renter share and a favorable FMR makes Section 8 participation a viable and attractive option for landlords and small-portfolio investors.
Verdict: Section 8 is recommended for ZIP 25186.
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.