Location: Lincoln County, WV | Metro: Huntington-Ashland, WV-KY-OH 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 | $770 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $78,648 | 1.27% | A |
| 3BR | $1,270 | $97,990 | 1.3% | A |
| 4BR | $1,660 | $140,235 | 1.18% | B |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP 25506 in Branchland, WV, several factors must be considered to ensure that the potential rewards outweigh the inherent risks.
Tenant turnover is a significant concern. The market rent of $780 is notably lower than the Fair Market Rent (FMR) of $860 for fiscal year 2024. This gap suggests that tenants who qualify for Section 8 vouchers might find it challenging to cover the difference between the market rent and their voucher amount, leading to higher turnover rates. High turnover can result in increased costs associated with finding new tenants, such as advertising, background checks, and property preparation.
Vacancy exposure is another critical risk factor. The Days on Market (DOM) is listed as N/A, which indicates a lack of recent sales data for the area. Without this information, it's difficult to predict how long a property might remain vacant. A prolonged vacancy can significantly impact cash flow and profitability, especially if maintenance costs continue to accrue during this period.
Deferred maintenance exposure is also a concern. With a typical home value of $99,701 and a median income of $44,013, many homeowners might struggle to keep up with regular maintenance. This could lead to higher repair costs and potential safety issues, both of which can affect the desirability of the property and the overall living conditions for tenants.
Despite these risks, there are mitigating factors. The renter share in Branchland, WV, is 32.3%, indicating a high concentration of renters in the area. A high renter density typically translates into greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.