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 | $740 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $88,129 | 1.18% | B |
| 3BR | $1,320 | $129,760 | 1.02% | B |
U.S. Census Bureau data (2024)
The analysis of ZIP code 40472, which includes Ravenna, KY, and the surrounding Powell County metro area, reveals several key points that are crucial for landlords and small-portfolio investors. Firstly, regarding the rent math, it does not work favorably based on the current financial metrics. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980, whereas the actual market rent according to Census ACS data is only $848. This discrepancy means that landlords would be renting below the FMR, potentially impacting their revenue streams.
Secondly, the acquisition cost of properties in this area is relatively affordable. The median home value stands at $110,133, which is a reasonable investment for small-scale real estate ventures. However, the lack of data on days on market (DOM) and the percentage of homes that required a price cut before selling suggests that there might be inefficiencies or uncertainties in the local real estate market, making it difficult to predict the ease or speed of property acquisitions.
Lastly, the tenant demand in ZIP 40472 is moderate. With a total population of 1,276, the renter share is 25.6%, indicating a stable but not high demand for rental properties. This share translates into approximately 327 potential renters, which could support a modest number of rental units.
In summary, while the acquisition cost of properties in ZIP 40472 is affordable, the rent math does not work well due to the lower market rent compared to the FMR. Tenant demand is present but limited, given the small population size. Therefore, the area is suitable for cautious, small-scale investments rather than large portfolios, with an emphasis on managing costs and understanding the local market dynamics to ensure profitability.
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.