Location: Pendleton County, WV | Metro: Grant 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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $150,470 | 0.62% | D |
| 3BR | $1,210 | $208,256 | 0.58% | F |
| 4BR | $1,290 | $251,732 | 0.51% | F |
U.S. Census Bureau data (2024)
Investors looking into ZIP 26847, located in Petersburg, WV, might have several concerns regarding the feasibility of investing in the area under Section 8 guidelines. Let's address these objections directly.
Objection 1: Will Fair Market Rent (FMR) of $870 for the metro area in fiscal year 2026 cover the mortgage on a home priced at $194,410?
The FMR of $870 must be evaluated against the typical mortgage costs for a home in this price range. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $194,410 home would be approximately $1,050 without property taxes and insurance. This indicates that the FMR alone does not fully cover the mortgage payments, leaving a shortfall of roughly $180 per month. However, it's important to note that the FMR is subject to adjustments based on local housing conditions and can increase over time.
Objection 2: Is there enough renter demand at 28.3%?
The rental demand in ZIP 26847 is relatively low at 28.3%. This percentage suggests that fewer households are interested in renting compared to owning. To put this into perspective, if we consider a broader metropolitan area, the rental demand might be higher, but locally, it's a concern. However, the demand for affordable housing in rural areas like Petersburg can be steady due to limited options. The data does not provide a complete picture of how many renters are actively seeking homes in this ZIP code, so further investigation into local rental trends would be advisable.
Objection 3: Will vouchers keep pace with market rents of $630?
The FMR of $870 is significantly higher than the current market rent of $630. This means that voucher holders should theoretically have enough assistance to cover the market rent. However, the actual disbursement of funds can vary. It's crucial to understand that while the FMR sets a benchmark, the Housing Choice Voucher program aims to pay no more than 30% of a household's income towards rent. If the average income of voucher recipients is lower than expected, they might struggle to afford the $630 rent even with the voucher. The data does not specify the average income levels of voucher recipients, so this aspect requires additional scrutiny.
In conclusion, while ZIP 26847 presents some challenges for investors, particularly around covering mortgage payments and assessing rental demand, the potential for stable returns exists. Investors should carefully review local economic conditions and the specifics of the Section 8 program in the area before 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.