Location: Whitley County, KY | Metro: McCreary 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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $720 | $79,027 | 0.91% | C |
| 2BR | $940 | $106,302 | 0.88% | C |
| 3BR | $1,160 | $162,681 | 0.71% | D |
| 4BR | $1,330 | $209,721 | 0.63% | D |
| 5BR | $1,543 | $247,293 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 40769, centered around Williamsburg, KY, reveals a strategic opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, while the current market rent, as per the Census ACS, stands at $840. This creates a $30 gap, representing a 3.57% difference between the two figures.
Given that the FMR exceeds the market rent, properties in this area can be leveraged for higher yields. Landlords who accept Section 8 vouchers will receive a rental subsidy that matches the FMR, ensuring a consistent and reliable income stream above the prevailing market rate. This makes it a particularly attractive play for those looking to maximize their returns without the risk associated with non-subsidized tenants.
Williamsburg, KY has a rental population of 38.9%, indicating a significant portion of the community relies on rented accommodations. With a median home value of $130,104 and a median income of $43,878, many residents likely qualify for housing assistance programs such as Section 8. This demographic supports the viability of the Section 8 market in the area, making it a stable investment choice.
Investors should consider the implications of this gap. Accepting voucher tenants ensures a steady income aligned with the higher FMR, which can offset potential maintenance costs and vacancy risks. Moreover, the demand for affordable housing in Williamsburg suggests that properties participating in the Section 8 program will remain occupied, reducing the likelihood of extended vacancies.
In summary, the gap between FMR and market rent in ZIP 40769 presents a compelling case for landlords and small-portfolio investors to embrace Section 8 vouchers. This strategy not only guarantees a yield above current market rates but also taps into the substantial need for affordable housing in Williamsburg, KY.
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.