Location: Rockcastle County, KY | Metro: Rockcastle County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
The Section 8 program analysis for ZIP code 40473 highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $870, but the market rent data is currently unavailable. This lack of market rent data makes it challenging to quantify the exact dollar and percentage gap between the FMR and the market rate.
In the absence of market rent figures, we can still provide insights based on the known FMR. If the FMR exceeds the market rent, landlords can benefit from the program by securing tenants who receive rental assistance, ensuring steady cash flow and minimizing vacancy risks. Voucher tenants would effectively turn this into a yield play, where landlords can expect consistent returns on their investment without the volatility often associated with open-market rentals.
Conversely, if the FMR is lower than the market rent, landlords must consider the financial implications of accepting housing voucher tenants. The difference between the FMR and the market rent represents the amount landlords might have to absorb to remain competitive in the local rental market. This could lead to reduced profit margins, especially if landlords aim to maintain their properties at a higher standard than what the FMR covers.
Anchoring the analysis in the broader context of Unknown, KY, we find that the percentage of renters, median home value, and median income are all currently unavailable. This absence of key demographic data complicates a comprehensive assessment of the area's rental market dynamics and the potential impact of Section 8 on landlord profitability and tenant satisfaction.
To conclude, while the FMR for ZIP 40473 is established at $870, the relationship between this figure and the actual market rent remains unclear. Landlords should carefully evaluate the potential benefits and drawbacks of participating in the Section 8 program, considering the steady income versus the possible reduction in rental revenue compared to open-market rates. Without specific market rent data, it's impossible to provide a precise dollar or percentage gap, but the decision to participate should be made with an understanding of these dynamics.
Data Sources: FMR data from HUD (2027).
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.