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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $57,890 | 1.55% | A+ |
| 2BR | $1,050 | $96,662 | 1.09% | B |
| 3BR | $1,340 | $150,790 | 0.89% | C |
| 4BR | $1,450 | $201,458 | 0.72% | D |
U.S. Census Bureau data (2024)
A decision tree for ZIP code 25704 (Huntington, WV) for landlords considering Section 8 investments starts with three key questions. Let's break down the analysis based on the provided data points.
1. Does FMR $920 (zip FY 2024) clear debt service on a $131,543 property?
The Fair Market Rent (FMR) for ZIP 25704 in fiscal year 2024 is $920. To determine if this clears the debt service on a property valued at $131,543, you need to calculate the monthly mortgage payment including principal, interest, taxes, and insurance. Assuming a typical mortgage rate of 4.5%, a 20-year term, and an average tax rate of 1.2%, the monthly mortgage payment would be approximately $820. This figure does not include property taxes and insurance, which can add another $100-$150 per month. Therefore, with FMR at $920, it would just cover the basic mortgage payment but might fall short when taxes and insurance are factored in. The answer is no.
2. Is market rent $957 (Census ACS) above, at, or below FMR?
The Census Bureau reports that the average market rent in ZIP 25704 is $957. This is slightly above the FMR of $920, indicating that landlords could potentially charge a bit more than the Section 8 voucher amount. However, this slight premium may not be significant enough to offset the challenges associated with lower rents. The answer is above.
3. Are 31.4% renters + N/A-day DOM enough demand?
The percentage of renters in ZIP 25704 is 31.4%. While this suggests a decent rental market, the Days on Market (DOM) being N/A indicates incomplete data. This could mean either very quick sales or long-term listings without clear resolution. Incomplete data makes it difficult to assess the overall demand accurately. The answer is it depends.
If you answered no to question 1, the decision to invest in Section 8 properties in ZIP 25704 becomes less favorable due to the tight margins between FMR and debt service. Even though the market rent is slightly higher at $957, it barely covers the additional costs beyond the mortgage. Additionally, the unclear demand signals from the DOM data add uncertainty to the investment potential.
In summary, investing in ZIP 25704 for Section 8 properties is not recommended due to the inability of FMR to fully cover debt service on a $131,543 property. Although market rents exceed FMR, the margin is minimal and insufficient to compensate for the financial pressures. The lack of clarity around demand further complicates the decision-making process.
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.