Location: Raleigh County, WV | Metro: Raleigh County, WV 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 | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $85,492 | 1.13% | B |
| 3BR | $1,340 | $129,431 | 1.04% | B |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $930 for ZIP 25823 (Coal City, WV) can cover the mortgage on a home priced at $99,772. Using a typical mortgage calculator, a 30-year fixed-rate mortgage with an interest rate of 4% would result in a monthly payment of approximately $470 for the principal and interest alone. This does not include property taxes, insurance, or maintenance costs. However, even when these additional expenses are factored in, the total should still fall below the FMR of $930, making it feasible to cover the mortgage with rental income.
The investor may also wonder if there is sufficient renter demand at 0.0% occupancy rate for rental units. The data indicates that about 23.4% of housing units in ZIP 25823 are rented, suggesting a modest but present demand for rentals. While 0.0% could imply a lack of available rental properties or recent turnover, the overall trend shows that there is a steady, albeit low, level of demand for rental housing in Coal City.
Another concern is whether the voucher program will keep pace with the market rents. Unfortunately, the data provided does not specify the current average market rent for ZIP 25823, nor does it provide information on the voucher program's coverage. Given the limited data, it is challenging to definitively state how well the voucher program aligns with market rents. However, the median housing rent payment in this ZIP code is $607, which is significantly lower than the FMR of $930. This suggests that vouchers may be sufficient for most units, though it is important to note that the voucher amount can vary and may not always match the FMR.
In conclusion, while the data presents some challenges, particularly in the lack of detailed information regarding the voucher program, the FMR of $930 appears adequate to cover mortgage payments on a home valued at $99,772. There is a demonstrable, albeit modest, demand for rental housing, and the current median rent suggests that vouchers may be sufficient to meet market needs. However, further investigation into the specifics of the voucher program would be advisable for a complete understanding.
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.