Location: Fayette County, WV | Metro: Fayette County, WV HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 25866 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $870. However, the market rent is not available, which makes it challenging to provide a precise percentage gap. Despite this limitation, we can still draw valuable insights based on the FMR figure and the broader economic context.
In ZIP 25866, only 7.7% of residents are renters, indicating a predominantly owner-occupied area. This low rental rate suggests that landlords and small-portfolio investors must be selective when choosing properties to manage or invest in. The median income of $69,050 provides a benchmark for understanding the financial capacity of potential tenants. Given the lack of market rent data, if we assume that the market rent is higher than the FMR, then landlords accepting Section 8 vouchers would be operating below open-market rates, which could lead to reduced profitability compared to what might be achievable in a purely private rental market.
The cost of housing voucher tenants below open-market rates is significant. Landlords will need to adjust their expectations regarding rental income. In such a scenario, the FMR of $870 represents the maximum amount that HUD will reimburse for a rental unit. Therefore, landlords must ensure that their costs align with this reimbursement rate to avoid financial losses. This includes factoring in maintenance costs, property management fees, and other expenses associated with owning and renting out a property.
If the FMR were to exceed the market rent, it would create a yield opportunity for landlords. They could potentially rent out units at rates higher than what they would receive through Section 8 vouchers, thereby increasing their profit margins. However, given the current data, we must operate under the assumption that the FMR is indicative of the lower bound of rental income for this area.
To summarize, the Section 8 play in ZIP 25866 is contingent upon the landlord's ability to manage costs effectively and understand the local rental dynamics. Accepting Section 8 vouchers means locking in a rental rate of $870, which may be below the market rate, thus impacting overall yields. Investors should carefully consider these factors before deciding to participate in the Section 8 program.
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.