Location: Huntington-Ashland, WV | Metro: Huntington-Ashland, WV-KY-OH HUD Metro FMR Area
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 | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $70,056 | 1.26% | A |
| 2BR | $1,030 | $93,852 | 1.1% | B |
| 3BR | $1,320 | $145,174 | 0.91% | C |
| 4BR | $1,430 | $226,673 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 41101, which covers parts of Ashland, Kentucky, reveals a critical insight into the local rental market dynamics. The Fair Market Rent (FMR) for the area, set at $960 for fiscal year 2024, exceeds the current market rent of $920, as reported by the Census Bureau's American Community Survey (ACS).
This creates a $40 gap, or approximately a 4.35% premium, in favor of landlords who accept Section 8 vouchers. This discrepancy means that voucher holders can secure rentals at rates slightly above the market average, making it a lucrative opportunity for property owners to capitalize on higher yields without significantly increasing their rents.
Ashland, KY has a population where 40.5% are renters, indicating a substantial demand for affordable housing options. The median home value stands at $117,001, while the median household income is $53,889, underscoring the economic conditions that necessitate programs like Section 8 to ensure housing affordability.
The premium associated with Section 8 vouchers can be particularly beneficial for small-portfolio investors looking to maximize their returns in a competitive rental market. By accepting vouchers, landlords can attract tenants who are willing to pay the higher FMR rate, thereby improving their cash flow and investment performance.
However, it is important for landlords to understand the administrative requirements and potential challenges associated with participating in the Section 8 program. These include regular inspections, maintaining certain standards of property upkeep, and navigating the bureaucratic processes that come with government-assisted housing.
In summary, the $40 premium represents a strategic advantage for landlords in ZIP 41101. It allows them to leverage the Section 8 program to achieve better rental yields while still offering affordable housing options in an area where nearly half of the residents are renters, and the median income is relatively low compared to the median home value.
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.