Location: Fayette County, WV | Metro: Fayette 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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $206,396 | 0.67% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 25854 for Section 8 purposes, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 25854 in fiscal year 2024 is $1090. To decide if this amount clears debt service on a property valued at $178,719, calculate the DSCR. Assuming an average mortgage rate of 5%, the annual mortgage payment would be approximately $10,723. The monthly mortgage payment would then be around $900. Given that the FMR is $1090, it exceeds the monthly mortgage payment, indicating a positive DSCR. Therefore, the answer to the first question is Yes.
Step 2: Market Rent vs. FMR
The market rent for ZIP 25854 is currently N/A. Without specific data on market rents, it's impossible to compare them directly to the FMR. However, if market rents were known and they were above the FMR, it would suggest that Section 8 properties might struggle to compete with market rates, potentially leading to lower occupancy. If market rents were at or below the FMR, then Section 8 properties could be more competitive. In this case, the answer is It Depends, as the comparison cannot be made without market rent data.
Step 3: Demand Analysis
In ZIP 25854, 3.3% of the population are renters, and the days on market (DOM) for rental properties is N/A. These figures suggest limited data availability for a precise demand analysis. A low percentage of renters and high DOM values typically indicate a less favorable market for rentals. However, since the DOM is missing, we can only rely on the rental percentage. With 3.3% of the population renting, there is minimal demand, which is not ideal for investment in Section 8 properties. Thus, the answer to this step is No.
Decision Outcome
Based on the decision tree, the final recommendation for buying in ZIP 25854 for Section 8 purposes is No. The positive DSCR indicates that the FMR can cover the mortgage payments, but the lack of sufficient demand makes it a less attractive investment opportunity.
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.