Location: Boone County, WV | Metro: Raleigh 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 | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $88,829 | 1.45% | A |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate for ZIP code 25209 reveals a stark contrast between the Federal Market Rent (FMR) and the actual market rent levels. The annualized 2-bedroom FMR for FY 2024 stands at $850, while the Census ACS reports the market rent at $538.
To understand the implications for investment, let's break down the gross yields for both scenarios. Using the FMR of $850, the annual rental income would be $10,200. Dividing this by the median home value of $69,045 gives an implied gross yield of approximately 14.77%. In contrast, using the market rent figure of $538, the annual rental income drops to $6,456, resulting in an implied gross yield of about 9.35%.
Given the 18.2% renter density in ZIP 25209, it is important to consider how these figures align with the reality of the local rental market. The FMR-based gross yield of 14.77% is significantly higher than the market rent-based gross yield of 9.35%, suggesting that Section 8 properties could potentially offer better returns compared to market-rate rentals.
However, the decision to invest should also factor in the dynamics of the rental market and the availability of Section 8 tenants. The lack of data on the number of days on market (DOM) indicates a need for further investigation into the speed at which properties are leased, particularly under the Section 8 program. This can affect the overall viability and turnover rates of investments in this area.
In conclusion, based on the provided figures, the gross yield from Section 8 properties in ZIP 25209 is roughly 14.77%, whereas the yield from market-rate rentals is around 9.35%. Landlords and small-portfolio investors should carefully weigh these gross yields against the local rental market conditions and the specific requirements of the Section 8 program before making any investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.