Location: Letcher County, KY | Metro: Letcher County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
In assessing the investment risk for Section 8 properties in ZIP code 40826, several factors indicate potential challenges that landlords might face. First, the tenant turnover rate can be problematic when considering the market rent versus the Fair Market Rent (FMR) of $910 for the fiscal year 2026, which is set for the metro area. If the local market rent exceeds this figure, landlords may struggle to maintain occupancy levels, as tenants may seek more affordable options outside the voucher program.
Vacancy exposure is another significant concern. With no available data on the number of days on market (DOM), it's difficult to predict how long it might take to fill vacancies. However, the lack of such data suggests that there could be periods where properties remain vacant longer than desired, leading to financial strain for landlords who rely on rental income.
The risk of deferred maintenance is also notable. Given the median income of $42,795, residents in ZIP 40826 may have limited resources for repairs and maintenance beyond their basic living expenses. This could result in higher-than-average maintenance costs for landlords, especially if they must cover additional expenses not included in the voucher amount.
Despite these risks, the high concentration of renters—comprising 14.5% of the total population—typically translates into robust demand for housing vouchers. This dense renter market often provides a steady pool of potential tenants who qualify for Section 8 assistance, helping to mitigate the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.