Location: Raleigh County, WV | Metro: Fayette County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 25864 centers around the disparity between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2024, the FMR is set at $930. However, the market rent data is currently unavailable, which complicates a direct comparison. Despite this limitation, it's crucial to understand the implications of the FMR being the only available figure.
In ZIP 25864, there is an extremely low percentage of renters at 0.0%, indicating that homeownership is predominant in the area. The median income stands at $76,250, suggesting that residents have a relatively high purchasing power. Given these conditions, landlords and small-portfolio investors should be aware that the FMR of $930 is likely above the market rent, making it a scenario where voucher tenants can provide a higher yield compared to typical market rents.
When the FMR exceeds the market rent, it becomes advantageous for property owners to participate in the Section 8 program. This is because the government pays the difference between the market rate and the FMR, ensuring that landlords receive a rental amount that is closer to the FMR. In ZIP 25864, this means that even if the market rent is significantly lower than $930, landlords can still achieve a rental income close to the FMR through the voucher program. This setup effectively turns the participation in Section 8 into a yield play for landlords, as they can potentially earn more than what the open market would offer.
Moreover, the high median income in the area suggests that many residents can afford to pay their portion of the rent without assistance, making the Section 8 program a viable option for landlords who want to ensure stable tenancy and consistent income. While the exact market rent is not provided, the analysis is anchored in the context of a nearly all-homeowner community with a strong median income, making the FMR a significant benchmark for potential rental yields.
Data Sources: FMR data from HUD (2027). 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.