Location: Huntington-Ashland, WV | Metro: Huntington-Ashland, WV-KY-OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 25726 in fiscal year 2024 can adequately cover the mortgage on a property. The median home value in this ZIP code is approximately $368,537. With a typical mortgage interest rate of around 4%, the monthly payment on a $368,537 home could range from $1,700 to $2,000, depending on the down payment and additional factors such as property taxes and insurance. Therefore, the FMR of $950 alone would not cover the mortgage.
The investor might also wonder if there is sufficient rental demand at a certain percentage. According to recent data, the rental vacancy rate in ZIP 25726 is relatively low, indicating strong demand for rental properties. However, specific percentages were not provided in the available data. To accurately assess the demand, it would be necessary to look at the local rental vacancy rate and compare it to the national average, which currently stands at about 6.0%. A lower vacancy rate suggests a more robust rental market.
Another concern could be whether Section 8 vouchers will keep pace with market rents. The median gross rent in 2024 for ZIP 25726 is $957, slightly above the FMR. The current federal policy outlook includes potential funding reductions to the Section 8 program, which could affect the availability and adequacy of vouchers. If these reductions occur, it may become challenging for vouchers to keep up with the market rents, especially if they do not adjust accordingly.
To summarize, while there is a strong rental market in ZIP 25726, the FMR of $950 will not cover the mortgage on a median-priced home. Additionally, future adjustments to Section 8 voucher amounts must be monitored closely to ensure they remain competitive with market rents.
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.