Location: Roane County, WV | Metro: Jackson County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 25244 provides insight into potential investment opportunities for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a two-bedroom unit set at $850 annually for fiscal year 2024, the implied gross yield can be calculated. The median home value in this area is $175,837.
To determine the gross yield using the FMR, we first need to annualize the rent. With an FMR of $850 per month, the annual rent would be $10,200. Given the median home value of $175,837, the gross yield can be calculated as follows:
Gross Yield = (Annual Rent / Median Home Value) * 100
In this case, the gross yield would be approximately 5.8%. This calculation assumes that the property is valued at the median home value and that it is rented out at the FMR rate for a two-bedroom unit.
However, since the market rent is listed as N/A, we cannot calculate a second scenario based on market rates. Nonetheless, it's important to consider the actual rental market conditions when making investment decisions. In ZIP code 25244, the renter density stands at 27.5%, indicating a moderate demand for rental properties.
The days on market (DOM) figure being N/A suggests there might be limited data available regarding how quickly properties are rented. This could imply either a stable rental market where properties are filled promptly, or a less active market where rental data is sparse.
Given the 5.8% gross yield derived from the FMR, this represents a conservative estimate of potential returns. For a more accurate assessment, investors should look into local rental trends and vacancy rates. The 27.5% renter density indicates that a significant portion of the population is likely renting, which supports the viability of rental investments.
While the FMR-based gross yield offers a starting point, investors should also consider other factors such as property management costs, maintenance expenses, and potential changes in rental policies or FMR adjustments over time.
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.