Section 8 Fair Market Rent (FMR) for ZIP 25720 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 25720 in Unknown, WV, highlights several potential issues that landlords should be aware of when considering Section 8 properties. First, tenant turnover can be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $950 for FY 2024. This difference suggests that landlords might face challenges in attracting tenants willing to pay the market rate, leading to higher turnover rates.

Vacancy exposure is another significant risk factor. With no data available on the average days on market (DOM), it's difficult to predict how long properties might remain vacant. Vacancies can lead to financial strain, especially if they persist due to limited tenant interest in the area.

Deferred maintenance is also a concern. The lack of specific data on typical home values and median incomes makes it challenging to assess the likelihood of tenants being able to contribute to maintenance costs. However, it's important to note that properties in this ZIP code may require regular upkeep to maintain their quality and appeal to tenants.

Despite these risks, the high renter share in the area indicates strong demand for rental housing, which often translates into a robust demand for Section 8 vouchers. This characteristic can mitigate some of the risks associated with vacancy and turnover, as there is a consistent pool of potential tenants who qualify for assistance.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.