Location: Whitley County, KY | Metro: Knox 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 | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $760 | $111,514 | 0.68% | D |
| 2BR | $940 | $123,707 | 0.76% | D |
| 3BR | $1,160 | $206,427 | 0.56% | F |
| 4BR | $1,390 | $275,142 | 0.51% | F |
| 5BR | $1,612 | $330,721 | 0.49% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 40701, Corbin, KY, reveals a favorable environment for cashflow. The HUD Fair Market Rent (FMR) for the Whitley County metro area for fiscal year 2026 is set at $900. This is notably higher than the reported market rent of $747 based on Census ACS data. Therefore, voucher tenants will cashflow at the FMR rate, providing a consistent and reliable income stream for landlords.
To further understand the investment potential, consider the median home value in the area, which stands at $177,551. Using the HUD FMR of $900, we can calculate the rent-to-price ratio. This ratio indicates that an average property in the area could generate approximately 5.6% annualized rental yield, assuming a 12-month lease cycle. This figure supports the notion that properties in ZIP 40701 offer a solid return on investment when compared to home values.
The real estate market in Corbin, KY, also shows signs of activity that can impact the decision-making process for investors. The median days on market (DOM) is 53 days, which is relatively low, suggesting that homes sell quickly once listed. Additionally, the price-cut share of 0.2% implies that sellers rarely need to lower their asking prices, indicating strong demand for housing in the area. These factors suggest that the buy side of the market is robust, potentially affecting the overall stability and desirability of the area for both residents and investors.
In conclusion, the strongest investor angle in ZIP code 40701 is cashflow, given the disparity between the HUD FMR and the actual market rent, along with the supportive rent-to-price ratio and active real estate market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.