Location: Morgantown, WV | Metro: Morgantown, WV MSA
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 | $1,140 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $128,924 | 1.16% | B |
| 3BR | $1,830 | $194,599 | 0.94% | C |
| 4BR | $2,220 | $239,410 | 0.93% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering Masontown, WV (ZIP 26542), might raise several concerns regarding the feasibility of investing in properties that participate in the Section 8 program. Here, we address these objections with the available data.
Will FMR $990 (zip FY 2024) cover the mortgage on a $171,401 home?
The Fair Market Rent (FMR) for ZIP 26542 in fiscal year 2024 is set at $990. This figure represents the average rent a tenant can pay under the Section 8 program. To determine if this amount covers the mortgage, consider the typical mortgage payment on a $171,401 home. Assuming a 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly mortgage payment, including principal, interest, taxes, and insurance, could be approximately $850. The $990 FMR comfortably exceeds this, providing a buffer for maintenance and other costs.
Is there enough renter demand at 13.7%?
The percentage of renter-occupied housing units in Masontown, WV, stands at 13.7%. This number is relatively low compared to national averages, which suggests a smaller pool of potential tenants. However, it's important to note that the demand for affordable housing remains consistent, especially for those who qualify for Section 8 assistance. While the overall rental market may be modest, the targeted demographic for Section 8 has a steady need for housing. Therefore, despite the lower percentage, the demand for subsidized rentals should still be sufficient.
Will vouchers keep pace with $883 market rents?
The market rent in ZIP 26542 is currently at $883. The Section 8 voucher program aims to provide subsidies that align with the local market conditions. Although the FMR is higher at $990, the actual market rent is lower. This indicates that vouchers should generally cover the majority of the market rent, leaving a manageable gap for landlords. However, the data does not specify how frequently the voucher amounts are adjusted to match market rents. It is crucial for landlords to stay informed about any changes in the voucher payment schedule to ensure they remain financially stable.
The data provides a snapshot of the financial landscape for Section 8 investments in Masontown, WV. While it shows that the FMR can support mortgage payments and that there is a demand for subsidized housing, the long-term sustainability of voucher payments relative to market rents requires ongoing attention. Landlords and small-portfolio investors should also consider other factors such as property management costs and the availability of qualified tenants when making investment decisions.
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.