Location: Harrison County, WV | Metro: Harrison County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 26463 reveals some key insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit in the metropolitan area for fiscal year 2026 is set at $950 per month. To derive the annualized rental income, we multiply this figure by 12 months, resulting in an annual income of $11,400.
The median home value for ZIP code 26463 is not available, which complicates the calculation of a direct gross yield comparison against market rents. However, we can still infer some important points about the potential returns from Section 8 properties.
In ZIP 26463, the renter density stands at 18.2%, indicating that a significant portion of the population might be interested in rental housing, including those eligible for Section 8 assistance. This statistic suggests a moderate demand for rental properties, which could support stable occupancy rates for Section 8 units.
The Days on Market (DOM) is also not available, which means we cannot directly assess how quickly properties are being rented out. However, the combination of the FMR and the moderate renter density provides a reasonable basis for estimating the gross yield from a Section 8 property.
To calculate the implied gross yield from a Section 8 property, we would typically divide the annual rental income by the purchase price of the property. Since the median home value is not available, we cannot provide a precise gross yield figure. However, if we assume a property value similar to other areas with comparable characteristics, the $11,400 annual rental income would likely result in a lower gross yield compared to market rents, where yields are often higher due to the absence of government rent controls.
Given the 18.2% renter density, it is more realistic to consider the Section 8 scenario for ZIP 26463, especially since the program guarantees a steady stream of tenants and rent payments. While the gross yield might be lower than what market rents offer, the stability provided by the Section 8 program can offset this drawback for risk-averse investors.
Investors should focus on the long-term benefits of Section 8 participation, such as reduced vacancy risks and predictable cash flows, rather than solely on the gross yield. The FMR of $950 per month offers a clear benchmark for the rental income, while the market conditions suggest a solid, albeit conservative, investment opportunity.
Note: The above analysis assumes a typical property value based on surrounding areas, as the median home value for ZIP 26463 is not available. Investors should conduct further research to determine specific property values and tailor their investment strategies accordingly.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.