Section 8 Fair Market Rent (FMR) for ZIP 40823 - 2027

Location: Letcher County, KY | Metro: Harlan County, KY

Investment Score for ZIP 40823

A+

Monthly Rent (2BR)

$910

Median Price (2BR)

$51,448

1% Rule

1.77%

Annual Yield

21.23%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$690
1 Bedroom	$750
2 Bedrooms	$910
3 Bedrooms	$1,190
4 Bedrooms	$1,200
5 Bedrooms	$1,392
6 Bedrooms	$1,559
7 Bedrooms	$1,684
8 Bedrooms	$1,768

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$910	$51,448	1.77%	A+
3BR	$1,190	$79,546	1.5%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,742

Median Household Income

$35,402

Housing Units

1,817

Renter Percentage

44.1%

Occupancy Rate

83.4%

Renter Occupied

668

Cumberland, KY, located in ZIP code 40823, is a small community that offers unique opportunities for real estate investors interested in Section 8 properties. The area's housing dynamics, influenced by both federal guidelines and local market conditions, provide a framework for understanding the potential returns and challenges faced by landlords and small-portfolio investors.

The Fair Market Rent (FMR) for Cumberland, KY, for the fiscal year 2026 is set at $870. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher, ensuring a stable income stream.
The average market rent for Cumberland, KY, stands at $633, according to the latest Census ACS data. This suggests that landlords could potentially command higher rents through Section 8 vouchers compared to the general market.
The median home value in Cumberland, KY, is $60,545, indicating a relatively affordable entry point for investors looking to acquire properties in the area.
Renters make up 44.1% of the population, showing a significant portion of the community relies on rental housing, which can be a positive indicator for demand.
The median household income in Cumberland, KY, is $35,402, which aligns closely with the eligibility requirements for Section 8 assistance, ensuring a steady pool of qualified tenants.

Investors in Cumberland, KY, can leverage the gap between the Fair Market Rent and the average market rent to maximize their returns while still providing affordable housing options. The low median home value makes property acquisition accessible, and the high percentage of renters signals strong demand for rental units. With the median income matching Section 8 eligibility criteria, landlords can expect a reliable tenant base, minimizing the risk of vacancy. However, it's important to note that the days on market (DOM) data is not available, which would have provided insight into how quickly properties are typically leased in the area. Despite this, Cumberland's Section 8 market presents a solid opportunity for those willing to invest in a community where affordable housing is crucial.

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.