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 | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $138,416 | 0.72% | D |
| 3BR | $1,190 | $214,456 | 0.55% | F |
| 4BR | $1,500 | $241,865 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 26547, Arthurdale, WV, reveals interesting insights into the potential returns for landlords and small-portfolio investors. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $890 per month for fiscal year 2024. When annualized, this translates to a gross income of $10,680 per year. Given the median home value in the area is $193,211, the implied gross yield based on the FMR would be approximately 5.5%. This is calculated by dividing the annual rent ($10,680) by the median home value ($193,211).
Next, let's look at the market rent, which is reported at $839 per month according to the Census ACS. Annualizing this figure gives us a gross income of $10,068 per year. Using the same median home value, the implied gross yield based on the market rent would be about 5.2%. This calculation is achieved by dividing the annual market rent ($10,068) by the median home value ($193,211).
The difference between these two yields is minimal, with the FMR scenario offering a slightly higher gross yield compared to the market rent scenario. However, the reality of the situation must also take into account the local rental market dynamics. In Arthurdale, the renter density stands at 12.4%, indicating a relatively low demand for rental properties. Additionally, the Day on Market (DOM) is listed as N/A, suggesting that there may not be enough recent data to provide an accurate measure of how quickly properties are rented out.
Given these factors, it is likely that the market rent scenario is more realistic for most investors. While the FMR provides a benchmark for what can be charged under the Section 8 program, the actual rental market may not support consistently achieving this higher rate due to the lower renter density. Landlords should prepare to possibly face longer vacancy periods or the need to offer incentives to attract tenants, which could further impact the net operating income (NOI).
In summary, while the FMR-based gross yield of 5.5% offers a theoretical upper limit, the market rent-based gross yield of 5.2% presents a more practical expectation for landlords and investors in Arthurdale, WV. The decision to participate in the Section 8 program should be made considering the local rental market conditions and the specific needs of the property owner.
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.