Location: Mason 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 | $970 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $143,261 | 0.81% | C |
| 3BR | $1,480 | $234,777 | 0.63% | D |
| 4BR | $1,600 | $332,706 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 25541 (Milton, WV) for Section 8 investment, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $960 cover the debt service on a property valued at $223,462?
Yes. The FMR of $960 per month can potentially cover the debt service on a property of that value, assuming a reasonable mortgage rate and terms. For instance, a typical mortgage payment for a property priced at $223,462 would likely be lower than $960 per month, especially considering that Section 8 provides additional security and stability in rental income.
No. If the monthly debt service exceeds $960, then the FMR does not sufficiently cover your expenses, making this ZIP code less attractive for a Section 8 investment.
It depends. This scenario arises if the mortgage payment is close to $960, but not definitively higher or lower. It requires further analysis of the mortgage rate and terms to make a final decision.
2) Is the market rent of $1,122 (Census ACS) above, at, or below the FMR?
Above. The market rent being $1,122 is significantly higher than the FMR of $960, indicating that there could be opportunities to charge more than the FMR for non-Section 8 tenants. However, this also means that Section 8 tenants might struggle to find housing outside of the program.
At. This scenario is unlikely given the provided data, but if market rent were equal to the FMR, it would suggest a balanced market where Section 8 tenants could afford other housing options, but landlords might still find it challenging to attract non-program tenants.
Below. If the market rent were below the FMR, it would indicate an overpriced Section 8 program relative to local market conditions. However, the data shows the opposite, with market rent exceeding the FMR.
3) Are 18.0% renters and N/A-day days on the market (DOM) enough demand?
Yes. While the exact DOM is not provided, the 18.0% of renters suggests a moderate level of demand. This percentage indicates that nearly one-fifth of the population is looking for rental housing, which can support a Section 8 investment. Additionally, the lack of DOM data implies that properties are rented quickly, reducing vacancy rates.
No. If the percentage of renters were significantly lower, or if the DOM was high, it would suggest low demand and potentially high vacancy rates, making it less favorable for a Section 8 investment.
It depends. This answer would apply if the DOM data were available and showed mixed results. However, with the current data, the 18.0% of renters supports a positive outlook on demand.
In conclusion, based on the provided data, ZIP 25541 appears to be a viable option for Section 8 investment, particularly if the FMR can cover debt service and the demand for rentals is stable. The higher market rent compared to the FMR also offers potential flexibility in managing non-Section 8 units.
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.