We investigate the homology representation of the symmetric group on rank-selected subposets of subword order. We show that the homology module for words of bounded length, over an alphabet of size $n,$ decomposes into a sum of tensor powers of the $S_n$-irreducible $S_{(n-1,1)}$ indexed by the partition $(n-1,1),$ recovering, as a special case, a theorem of Björner and Stanley for words of length at most $k.$ For arbitrary ranks we show that the homology is an integer combination of positive tensor powers of the reflection representation $S_{(n-1,1)}$, and conjecture that this combination is nonnegative. We uncover a curious duality in homology in the case when one rank is deleted. We prove that the action on the rank-selected chains of subword order is a nonnegative integer combination of tensor powers of $S_{(n-1,1)}$, and show that its Frobenius characteristic is $h$-positive and supported on the set $T_{1}(n)=\{h_λ: λ=(n-r, 1^r), r\ge 1\}.$ Our most definitive result describes the Frobenius characteristic of the homology for an arbitrary set of ranks, plus or minus one copy of the Schur function $s_{(n-1,1)},$ as an integer combination of the set $T_{2}(n)=\{h_λ: λ=(n-r, 1^r), r\ge 2\}.$ We conjecture that this combination is nonnegative, establishing this fact for particular cases.