Location: Charleston, WV | Metro: Charleston, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 25285 in the Charleston, WV HUD Metro FMR area reveals several key points regarding its suitability for investment in rental properties.
Firstly, the rent math does not favorably align with the Federal Market Rent (FMR) and market rent figures. The FMR set at $850 for fiscal year 2024 exceeds the market rent of $648 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to find tenants willing to pay the higher FMR rate, thus potentially leading to vacancies or the need to offer discounts on advertised rents.
Secondly, the acquisition cost of homes in this area appears to be reasonable, with a median home value of $136,708. However, the lack of data on the number of days on market (DOM) and the percentage of homes needing a price cut indicates uncertainty around how quickly and efficiently homes can be sold or acquired. This could pose challenges for new investors looking to enter the market swiftly and without significant negotiation.
Lastly, there is a moderate tenant demand in the area, with a total population of 825 and 46.7% of residents being renters. While this percentage signifies a considerable portion of the population seeking rental housing, the small overall population might limit the pool of potential tenants, especially considering the higher FMR rates compared to the actual market rent.
Verdict: Despite the moderate tenant demand, the mismatch between the FMR and market rent figures poses a risk for landlords aiming to secure Section 8 contracts. The higher FMR rate of $850 may not be sustainable given the current market conditions, which suggest a lower willingness to pay among tenants. Additionally, while home values are relatively low at $136,708, the absence of detailed sales data complicates the assessment of acquisition affordability. Overall, the area presents opportunities but also challenges that must be carefully considered before investing.
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.