Location: Lee County, KY | Metro: Estill County, KY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $830 | $88,816 | 0.93% | C |
| 2BR | $910 | $104,454 | 0.87% | C |
| 3BR | $1,150 | $165,005 | 0.7% | D |
| 4BR | $1,380 | $181,415 | 0.76% | D |
U.S. Census Bureau data (2024)
In ZIP code 40336 of Irvine, KY, landlords considering Section 8 investments must first acknowledge potential challenges. Tenant turnover is a significant risk, with market rents at $689 compared to the Fair Market Rent (FMR) of $870 for FY 2026 in the metro area. This disparity suggests that tenants might be drawn to higher rental values outside of Irvine, increasing the likelihood of frequent moves.
Vacancy exposure is another concern. The Days on Market (DOM) for properties in this area is currently unavailable, which indicates an unpredictability regarding how long it might take to find a new tenant once a unit becomes vacant. This uncertainty can lead to periods of reduced cash flow and increased costs associated with marketing and maintenance during vacancies.
The deferred-maintenance exposure is substantial, considering the typical home value of $131,144 and the median household income of $46,367. Landlords should be prepared for ongoing maintenance needs that may not be fully covered by the income generated from Section 8 rentals. This financial strain can impact the overall profitability and sustainability of the investment.
However, these risks are tempered by the high proportion of renters in the area, with 30.1% of residents being renters. High renter density often translates into a robust demand for rental housing, including those supported by Section 8 vouchers. This ensures a steady pool of potential tenants who qualify for the program, reducing the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 40336, Irvine, KY.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.