Location: Ritchie County, WV | Metro: Pleasants County, WV
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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $133,876 | 0.93% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 26346 provides valuable insights into potential investment opportunities for landlords and small-portfolio investors. Based on the data provided, the Federal Market Rent (FMR) for a 2-bedroom unit in fiscal year 2026 is set at $900 annually, while the market rent based on Census ACS data stands at $725 per month.
To derive the gross yield, we first need to calculate the annual rental income for both scenarios. For the Section 8 scenario, using the FMR of $900, the annual rental income would be $900. For the market rent scenario, multiplying $725 by 12 months gives an annual rental income of $8,700.
The median home value in ZIP 26346 is $108,641. Using this figure, the implied gross yield for the Section 8 scenario is calculated by dividing the annual rental income ($900) by the median home value ($108,641), resulting in a gross yield of approximately 0.83%. In contrast, the implied gross yield for the market rent scenario is calculated by dividing the annual rental income ($8,700) by the median home value ($108,641), leading to a gross yield of approximately 7.97%.
The 4.1% renter density suggests that the majority of homes in ZIP 26346 are owner-occupied rather than rented. This low density implies that securing a Section 8 tenant might be challenging due to limited demand. However, it also indicates that there could be a smaller pool of rental properties available, potentially making it easier to attract tenants if you have a property listed.
The N/A-day Days on Market (DOM) means that there is insufficient data to determine how quickly rental properties are typically leased in this area. This lack of information can make it difficult to predict vacancy rates, which are crucial for calculating the net operating income (NOI).
Given the low renter density, the Section 8 scenario with a gross yield of 0.83% is less likely to be representative of typical rental income in ZIP 26346. The market rent scenario, with a gross yield of 7.97%, is more realistic for most investors looking to generate income from rental properties in this area. However, it's important to note that actual yields will depend on factors such as property management costs, maintenance expenses, and vacancy rates, which must be considered when evaluating the true profitability of an investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.