Location: Huntington-Ashland, 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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $159,376 | 0.7% | D |
| 3BR | $1,420 | $236,729 | 0.6% | F |
| 4BR | $1,540 | $353,513 | 0.44% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 25545 (Ona, WV) for Section 8 investment, follow this decision tree:
1. Does the Fair Market Rent (FMR) of $1150 cover the debt service on a $244,455 property?
If the monthly debt service on your property is less than $1150, then the answer is yes. For instance, if you finance the property at a rate that keeps your monthly mortgage payment under $1150, you can rely on the FMR to cover your costs. However, if the monthly debt service exceeds $1150, the answer is no. You would need to ensure that the FMR is sufficient to meet your financial obligations.
2. How does the market rent of $943 compare to the FMR?
The market rent is below the FMR. This means that tenants receiving Section 8 vouchers could potentially pay more than what the average market rent suggests. If you plan to exclusively cater to Section 8 tenants, the higher FMR can be beneficial. However, if you aim to attract a mix of Section 8 and market-rate tenants, the lower market rent might limit your ability to increase rents beyond the FMR without losing non-subsidized tenants.
3. Is the demand strong enough with 7.7% of residents being renters and an unknown number of days on the market (DOM)?
The rental market share of 7.7% indicates a relatively low demand for rental properties in Ona, WV. Without knowing the DOM, it's challenging to assess how quickly properties are rented out. If the DOM is high, indicating slow turnover, this would suggest that demand is weak. In such a scenario, the answer would be no, unless you can find ways to reduce costs or improve occupancy rates through better management practices or property enhancements.
If the DOM is low or moderate, suggesting quicker turnover, the answer could be yes or it depends. A quick turnover is positive for cash flow but does not guarantee long-term stability. You should consider other factors such as the local economy, job availability, and the overall housing market conditions before making a final decision.
In summary, purchasing a property in ZIP 25545 for Section 8 investment hinges on the alignment between FMR and debt service, the difference between FMR and market rent, and the strength of the rental demand. Ensure that your financial model reflects these specifics accurately.
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.