Location: Grant County, WV | Metro: Grant County, WV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 26720 reveals a challenging investment landscape due to the lack of specific market data. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, as set by HUD for fiscal year 2026, is $980 per month. This figure can be annualized to calculate a potential rental income of $11,760 per year.
To derive the gross yield, we must first understand that the median home value is not available, nor is the market rent for the area. However, assuming a typical property value for a two-bedroom home in the neighborhood, we can estimate the gross yield based on the FMR. If we consider a hypothetical median home value of $150,000, the gross yield would be approximately 7.84%. This is calculated by taking the annual rental income ($11,760) and dividing it by the median home value ($150,000).
In contrast, if we had the market rent data, the gross yield would likely differ. Unfortunately, the absence of this data makes it impossible to provide an accurate comparison. However, it's important to note that the renter density in ZIP 26720 is reported at 0.0%, indicating a very low proportion of renters relative to homeowners. This suggests that the demand for rental properties, including those under Section 8, might be limited.
The Days on Market (DOM) data is also not available, which typically helps investors gauge how quickly they can expect to lease out a property. Given these constraints, the scenario based on the FMR provides a clearer, albeit rough, picture of the potential returns. Investors should be cautious, as the actual performance could vary significantly depending on the specific property and local market conditions.
The gross yield derived from the FMR is a conservative estimate and may not reflect the true earning potential of a property in ZIP 26720. Landlords and small-portfolio investors must conduct thorough due diligence, including understanding the local housing market dynamics, before making any investment decisions. While the FMR-based yield offers a starting point, the reality of rental income and property values could lead to different outcomes.
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.