Location: Menifee County, KY | Metro: Menifee County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 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 skepticism surrounding investing in ZIP 40316, located in Denniston, KY, is understandable given the specific challenges raised by potential investors. Let's address these concerns directly with available data.
Will FMR $870 (metro FY 2026) cover the mortgage on a home? The Fair Market Rent (FMR) of $870 for the area does not provide a comprehensive picture of mortgage coverage due to the lack of specific median home values for ZIP 40316. However, the median home value in Denniston, KY, is notably lower than the national average, standing at approximately $110,800. This suggests that mortgage payments could be relatively low compared to higher-cost areas, making it feasible for the FMR to cover a mortgage on a modest home.
Is there enough renter demand at 46.9%? With 46.9% of households being renters, there is a significant demand for rental properties in ZIP 40316. This percentage indicates a healthy rental market, but it's important to note that the demand might be concentrated in certain types of properties. The data suggests that while there is demand, the type of property and its location within the ZIP code will influence its success.
Will vouchers keep pace with market rents? The question of whether vouchers will keep pace with market rents is critical for landlords participating in the Section 8 program. While the data does not explicitly state the voucher amount for ZIP 40316, the FMR of $870 serves as a benchmark. Historically, voucher amounts have been adjusted to align with local market conditions, but this adjustment is not guaranteed every year. Therefore, it's prudent to monitor local adjustments and consider the possibility of occasional gaps between voucher amounts and market rents.
In summary, while ZIP 40316 presents some challenges, particularly regarding the alignment of voucher amounts with market rents, the relatively low median home value and significant renter demand indicate that it can be a viable investment opportunity for landlords and small-portfolio investors. Careful monitoring of local adjustments and understanding the specific needs of the rental market will be key to success.
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.