Location: Powell 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 | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $161,653 | 0.56% | F |
| 3BR | $1,260 | $190,592 | 0.66% | D |
| 4BR | $1,520 | $247,795 | 0.61% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP 40380, located in Stanton, KY, and part of the Powell County, KY metro area, reveals several key points regarding its viability for real estate investment, particularly focusing on rental properties.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870. However, the current market rent, as per Census ACS data, stands at $784. This indicates that while the FMR provides a benchmark, actual rents may be lower, suggesting a potential gap between government subsidies and market rates.
Regarding the affordability of property acquisition, the median home value in ZIP 40380 is $162,728. With no data available on the number of days on market (DOM), it's difficult to assess how quickly properties are selling. However, the fact that only 0.2% of homes have been listed with a price cut suggests that homes are generally selling at their original asking price, indicating a stable market without significant downward pressure on home values.
To gauge tenant demand, we look at the population and the percentage of renters. ZIP 40380 has a total population of 7,100, with 32.1% being renters. This translates to approximately 2,279 individuals who might seek rental housing, providing a steady base of potential tenants.
Verdict: The rent math in ZIP 40380 is challenging due to the discrepancy between the FMR and the actual market rent. Acquisition appears affordable with a median home value of $162,728, and the lack of price cuts suggests a seller-friendly market. Tenant demand is moderate, supported by a substantial renter share of the population. For landlords and small-portfolio investors, this area could offer a balance between manageable costs and a reliable tenant pool, though they should carefully consider the rental income versus the FMR subsidy gap.
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.