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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $73,895 | 1.45% | A |
| 3BR | $1,370 | $108,592 | 1.26% | A |
| 4BR | $1,480 | $164,252 | 0.9% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 25702, located in Huntington, West Virginia, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 25702 in fiscal year 2024 is set at $860, while the Census American Community Survey (ACS) indicates that the average market rent is $950. This creates a $90 gap, representing a 10.47% difference between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with housing voucher tenants below open-market rates. The primary challenge lies in the fact that voucher payments are fixed at the FMR level, which means landlords might have to accept a lower rent than what the market would otherwise bear. This can impact the overall profitability of rental properties, especially when considering the maintenance and operational costs that typically align with market conditions rather than government-set rates.
In the context of Huntington, where 45.0% of residents are renters and the median home value stands at $94,187, the lower FMR can still represent a significant portion of the median household income of $40,708. This suggests that voucher tenants, while providing a steady stream of income, may not cover all expenses due to the $90 shortfall per unit. Landlords must carefully balance their expectations and understand that while the guaranteed payment from the Housing Choice Voucher program reduces risk, it also caps potential earnings.
To illustrate, if a landlord owns five units in ZIP 25702, the total annual shortfall would amount to $5,400 ($90 x 12 months x 5 units), assuming they could otherwise rent out these units at the market rate of $950. This cost must be weighed against the benefits of having a stable tenant base and reduced vacancy rates.
In summary, the gap between the FMR and market rent in ZIP 25702 presents a clear financial consideration for landlords and small-portfolio investors. While the Housing Choice Voucher program ensures consistent income, it does so at a rate that is below the current market conditions, thus potentially affecting the yield on investment properties in this area.
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.