Location: Laurel County, KY | Metro: Laurel 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 | $1,080 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,080 | $223,615 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 40737 are significant and must be carefully considered before investing. Tenant turnover is a critical issue, with the market rent at $821 being notably lower than the Fair Market Rent (FMR) of $870 for the fiscal year 2026 in the metropolitan area. This discrepancy can lead to higher tenant churn rates, as individuals might prefer non-subsidized housing that offers more value for their money. Landlords should prepare for frequent vacancies and the associated costs of advertising, screening, and turnover.
Vacancy exposure is another concern. The days on market (DOM) for properties in this area is not available, which makes it difficult to predict how long a unit might remain vacant. In a competitive rental market, landlords could face extended periods without rental income, increasing financial pressure and the need for reserves to cover expenses during these times.
The deferred maintenance exposure is substantial, considering the typical home value in ZIP 40737 is $153,648, while the median household income is $47,096. These figures suggest that homeowners, including potential landlords, may struggle to maintain their properties adequately. With limited financial resources, upkeep can become neglected, leading to costly repairs and safety issues that could impact the property's ability to attract and retain tenants.
However, the high renter share of 20.0% in ZIP 40737 presents an opportunity. High renter density typically correlates with increased demand for rental housing, including those who rely on Section 8 vouchers. This demand can help mitigate the risks of tenant turnover and vacancy exposure, ensuring a steady stream of qualified applicants looking for affordable housing options.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 40737 is moderate. While there are notable challenges related to tenant turnover and maintenance, the strong renter base provides a solid foundation for managing these risks effectively.
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.