Location: Owen County, KY | Metro: Owen County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
To classify ZIP code 40355, we must consider both yield and stability. The yield is driven by the Federal Market Rent (FMR) of $970 for the fiscal year 2026, which is set by the U.S. Department of Housing and Urban Development (HUD) for the metro area. This figure is significantly higher than the median home value of $222,605, suggesting that rental income can be a substantial portion of property value. However, the lack of market rent data indicates that FMR might be the primary benchmark for rental rates, which could influence expectations.
Stability is assessed through the percentage of renters at 15.3%, which is relatively low. A lower percentage of renters typically implies less turnover and greater potential for long-term tenancies. Unfortunately, the absence of days-on-market (DOM) and income data means we cannot fully evaluate how stable the local economy is or how quickly properties are rented out. Without these specifics, we must rely heavily on the rental rate and property value to gauge stability.
The high FMR relative to the median home value suggests a strong yield. If we assume the FMR is reflective of actual rental rates, landlords can expect a good return on investment. However, the low percentage of renters introduces uncertainty about the demand for rental properties and the potential for sustained occupancy. This makes ZIP 40355 lean towards a high-yield but potentially unstable market. It is not ideal for a flip-style market due to the lack of specific market rent data, nor does it appear to be a steady cash-flow zone given the limited income and DOM data. Landlords should focus on properties that offer good rental yields while being mindful of the risks associated with lower tenant demand.
A key figure to note is the $970 FMR, which is a crucial benchmark for rental pricing in the area. Given the median home value of $222,605, a landlord could reasonably expect to achieve a decent cash-on-cash return if they can secure tenants at the FMR rate. However, the 15.3% renter population suggests that competition for tenants might be fierce, and maintaining consistent occupancy could pose challenges.
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.