Location: Breckinridge County, KY | Metro: Breckinridge County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 40152, which encompasses Mc Daniels, Kentucky, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for a metro area in fiscal year 2026 is set at $870. However, the market rent in Mc Daniels is notably lower, at $690. This means there is a $180 difference, or approximately 26.4% gap, between the FMR and the market rent.
In this context, landlords and small-portfolio investors should understand that accepting Section 8 vouchers can be a yield play. Despite the FMR being higher, the actual market conditions in Mc Daniels suggest that many properties are rented below the FMR. Voucher tenants can provide a steady, government-backed income stream that exceeds the typical market rent. This makes it financially viable for landlords to participate in the Section 8 program, even if the FMR does not fully reflect the local rental market.
Mc Daniels, with a median home value of $170,486 and a median household income of $71,406, has a low percentage of renters at just 2.1%. Given these factors, the potential for higher yields through Section 8 vouchers becomes particularly attractive. The discrepancy between the FMR and the actual market rent allows landlords to benefit from a guaranteed income that is above the local average, thus enhancing their investment returns.
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.