Location: Huntington-Ashland, WV | Metro: Huntington-Ashland, WV-KY-OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP 45645, Kitts Hill, OH, are significant. Firstly, tenant turnover could be an issue, as the market rent stands at $940, which is notably lower than the Fair Market Rent (FMR) of $1010 for fiscal year 2024. This discrepancy suggests that tenants might struggle to find the extra $70 needed to cover the FMR, leading to higher turnover rates.
Vacancy exposure is another concern, particularly since there is no available data on days on market (DOM), indicating a lack of transparency in local real estate trends. A prolonged period of vacancy can significantly impact your cash flow, especially when dealing with government programs that have strict guidelines and potentially slower payment cycles.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $151,154 and a median income of $64,632, homeowners in this area might find it challenging to keep up with maintenance costs, especially if they rely on Section 8 vouchers. This financial strain could result in properties requiring more upkeep than anticipated, increasing your operational expenses.
However, these risks must be weighed against the high concentration of renters in the area. The 7.9% renter share indicates a substantial number of residents who are likely to seek housing assistance through Section 8 vouchers. High renter density generally translates into a greater demand for subsidized housing, making it easier to fill vacancies and maintain a steady stream of rental income.
In conclusion, the investment in Section 8 properties in ZIP 45645 presents a moderate risk for a first-time Section 8 landlord due to the combination of potential challenges and opportunities.
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.