Location: Raleigh County, WV | Metro: Raleigh County, WV HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 25920 provides a critical insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for FY 2024 is set at $930 per month. However, without specific data on market rents and median home values, the analysis must rely on the FMR figure to draw comparisons.
To calculate the implied gross yield based on the FMR, we first annualize the monthly rent. With a monthly rent of $930, the annual rent would be $11,160. Assuming a property value that aligns with typical rental investments, let's use a hypothetical median home value of $150,000 for the sake of illustration. This gives us an implied gross yield of 7.44% ($11,160 / $150,000).
In contrast, if we were to consider the market rent, which is currently not available, the gross yield would likely differ. Market rents typically exceed FMRs, potentially offering a higher gross yield. However, without this specific information, it's challenging to provide a precise comparison.
The 0.0% renter density in ZIP 25920 suggests that very few residents are enrolled in the Section 8 program. This low participation rate implies that relying solely on FMR for rental income may not be realistic for most properties in this area. Landlords should expect to compete with market rents to attract tenants, even those with vouchers, due to the scarcity of voucher users.
The N/A-day Days on Market (DOM) indicates incomplete data, which could mean either a very active or inactive market. In either case, the lack of specific market rent data and median home values makes it difficult to accurately assess the gross yield beyond the FMR-based calculation. For a comprehensive investment strategy, investors should seek out local real estate agents or market analysts to obtain up-to-date market rent figures and property valuations.
Conclusion: Given the limited data, the FMR-based gross yield of 7.44% serves as a baseline for investment consideration. However, for practical purposes, landlords and investors should anticipate achieving closer to market rates, which would result in a higher gross yield. The low Section 8 participation rate further supports this approach, as voucher holders may be less common in this ZIP code.
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.