Location: Harlan County, KY | Metro: Harlan 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 | $770 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $65,244 | 1.44% | A |
| 3BR | $1,230 | $119,999 | 1.03% | B |
| 4BR | $1,240 | $164,696 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 40806, located in Baxter, KY, has a population of 1,732 residents. Only 13.9% of these residents are renters, indicating that this is primarily a homeowner-dominated area rather than a renter-heavy ZIP. The median household income stands at $59,837, which provides context for the affordability of housing in the area.
The typical market rent for the region is $689. This represents approximately 11.5% of the median household income, calculated by dividing the rent by the median income ($689 / $59,837 = 0.115). Given the federal fair market rent (FMR) of $920 for the metro area (as of FY 2026), the local market rent is significantly lower, suggesting that Baxter, KY, is relatively affordable compared to surrounding areas.
In terms of Section 8 voucher demand, the low percentage of renters in the ZIP code implies that the number of voucher holders is also likely to be limited. Landlords in this area should not expect a large pool of tenants relying on Section 8 vouchers due to the higher proportion of homeowners and the fact that the median income is not particularly low relative to the cost of living.
A landlord in ZIP 40806 can anticipate a tenant profile that is generally financially stable, given the median income level and the relatively low market rent. Tenants are expected to pay a significant portion of their income towards rent, but it remains within a reasonable range considering the local economic conditions. While some tenants might use Section 8 vouchers, the majority will likely be able to afford market rates without assistance.
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.