Location: Meade County, KY | Metro: Meade County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 40117 in Meade County, KY, reveals mixed outcomes for potential Section 8 investments.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 40117 in fiscal year 2024 is set at $1070. However, the Census American Community Survey (ACS) indicates a market rent of $929. This means that landlords participating in the Section 8 program can expect a higher rental income compared to the current market rate, making the rent math favorable for them.
Regarding the affordability of acquisition, the median home value in ZIP 40117 is $278,159. Unfortunately, the data does not provide information on the number of days on the market (DOM) or the percentage of homes that required price cuts to sell. This lack of data makes it difficult to assess the ease or difficulty of acquiring properties at a reasonable cost. However, the median home value suggests that property purchases will be significant investments.
The third question addresses tenant demand. ZIP 40117 has a total population of 2,050, with 9.1% of residents being renters. Given these numbers, the pool of potential Section 8 tenants is relatively small, which could pose challenges in finding enough qualified applicants to fill available units. This low renter share might indicate a less competitive market for rental properties but also implies limited demand.
Verdict: The rent math in ZIP 40117 is favorable for landlords participating in the Section 8 program due to the higher FMR compared to the market rent. However, the acquisition process may require careful consideration given the high median home value and the absence of DOM and price-cut data. Tenant demand appears to be limited, with only 9.1% of the population renting, which could affect the ability to quickly lease out properties. Landlords and small-portfolio investors should weigh these factors carefully before committing to investments in this area.
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.