Location: Mason County, WV | Metro: Mason County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 25247 with a focus on Section 8 properties would follow these steps:
1) Does the Fair Market Rent (FMR) of $870 cover the debt service on a property valued at $89,535?
Yes: The FMR of $870 per month can indeed support the debt service on a property priced at $89,535. This assumes a typical mortgage rate and term that aligns with the rental income generated.
No: If the FMR does not cover the debt service, then investing in this ZIP code is not advisable. The financial sustainability of the investment would be compromised without sufficient rental income.
It Depends: This scenario would arise if there's uncertainty about the exact terms of the mortgage, such as interest rates or length of the loan. However, based on general assumptions, the FMR of $870 should clear the debt service on a property of this value.
2) Is the market rent above, at, or below the FMR?
Above: If the market rent is above the FMR, this indicates a potential for higher returns if the property is rented outside of Section 8. However, it also means that Section 8 tenants might struggle to find affordable housing options.
At: Market rent equaling the FMR suggests a balanced market where Section 8 rents match what non-subsidized tenants are willing to pay. This scenario supports stable cash flows but limits upside potential.
Below: A market rent below the FMR would be advantageous for landlords participating in Section 8, as they could potentially charge the higher FMR rate. This would provide better financial stability and higher returns.
N/A: With no data available on market rent, it's difficult to make a precise assessment. However, assuming the FMR covers debt service, landlords can still consider this ZIP code if they are primarily focused on Section 8 tenants.
3) Are 13.1% of renters combined with the unknown days on market (DOM) indicative of sufficient demand?
Yes: With 13.1% of the population renting, there is a notable demand for rental properties. If the DOM is low, indicating quick turnover, this would further support the viability of the ZIP code for Section 8 investments.
No: If the DOM is high, suggesting slow turnover and difficulty in finding tenants, then even with 13.1% of renters, the demand may not be strong enough to justify an investment.
It Depends: Without specific DOM data, the decision hinges on other factors such as local economic conditions, job growth, and the overall desirability of the area. The 13.1% figure alone is insufficient to determine demand conclusively.
In conclusion, the ZIP code 25247 shows promise for Section 8 investments given that the FMR can cover the debt service on properties around $89,535. However, the lack of market rent and DOM data introduces uncertainties that must be addressed before making a final decision.
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.