Location: Owsley County, KY | Metro: Jackson County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
ZIP code 40486, located in Owsley County, Kentucky, offers unique opportunities for inclusion in a Section 8 portfolio strategy. Given the specifics of the area, it stands out as a cash-flow anchor. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $880, which exceeds the current market rental rate of $826. This $54 spread ensures that landlords can maintain steady cash flow without relying solely on the fluctuating market rates.
The median home value in ZIP 40486 is $113,138, indicating that the real estate market here is relatively stable and affordable. However, the median income of $64,917 suggests that while there is demand for housing, the higher income levels may not translate into significant rental price increases. Additionally, the low price-cut share and the lack of data on days on market (DOM) indicate that the market is not highly competitive, making it less likely for rapid appreciation.
The renter share of 14.2% further supports the cash-flow anchor classification. While not exceptionally high, this figure does suggest a consistent pool of tenants who rely on rental properties. In a Section 8 portfolio, ZIP 40486 can provide a reliable foundation, ensuring that landlords receive a steady stream of income through guaranteed rental assistance payments.
To summarize, ZIP 40486 is best categorized as a cash-flow anchor within a Section 8 portfolio strategy. The $54 spread between the FMR and market rental rate, combined with a stable median home value and a moderate renter share, makes it a secure investment choice for those seeking consistent income rather than rapid appreciation.
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.