Location: Lincoln County, WV | Metro: Putnam 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 | $720 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $84,394 | 1.13% | B |
| 3BR | $1,320 | $129,583 | 1.02% | B |
| 4BR | $1,590 | $198,719 | 0.8% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 25523 (Hamlin, WV) reveals a distinct scenario when comparing Federal Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $910 (for FY 2024), the gross yield can be calculated as follows:
$910 per month translates to an annual rental income of $10,920. Given the median home value of $109,519, the implied gross yield for a property rented at the FMR rate is approximately 9.97%. This calculation provides a baseline for potential rental income under the Section 8 program.
In contrast, using the market rent figure of $688 per month (from Census ACS data), the annual rental income drops to $8,256. With the same median home value of $109,519, the implied gross yield for a property rented at market rates is significantly lower at about 7.53%.
The disparity between these two yields highlights the financial advantage of participating in the Section 8 program over renting at market rates. However, the reality of the situation must also consider the local rental market dynamics. Hamlin, WV, has a relatively low renter density of 23.3%, indicating that a substantial portion of the population owns their homes rather than renting. This factor suggests that finding tenants willing to pay the higher FMR rate could be challenging.
The Days on Market (DOM) being listed as N/A implies either a lack of data or an unusually quick turnover in rentals, which could indicate strong demand for affordable housing. Despite this, the actual ability to consistently lease properties at the FMR rate may be limited due to the high ownership rate among residents. Therefore, while the 9.97% gross yield is theoretically possible through Section 8 participation, the 7.53% yield based on current market conditions appears more realistic.
Landlords and small-portfolio investors should weigh these factors carefully when considering whether to participate in the Section 8 program or to rent at market rates. The decision should balance the potential for higher yields against the practical challenges of tenant acquisition and retention in a market with low renter density.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.