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 | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $47,920 | 2.42% | A+ |
| 3BR | $1,520 | $75,393 | 2.02% | A+ |
U.S. Census Bureau data (2024)
The analysis of ZIP 40828, which encompasses Evarts, KY, within the Harlan County, KY metro area, reveals several key points that are crucial for landlords and small-portfolio investors.
The rent math does not favorably align with the Federal Market Rent (FMR) and the current market conditions. The FMR for the area is set at $1,090 for fiscal year 2026, whereas the actual market rent, according to the Census ACS, is $918. This indicates that properties priced at the FMR level would be overpriced compared to what tenants are currently paying, potentially deterring occupancy rates.
Regarding property acquisition, the median home value in ZIP 40828 stands at $57,970. However, the lack of data on days on market (DOM) and the percentage of homes that have been discounted suggests that the market may be less liquid or less competitive than other areas. This could imply that acquiring properties at affordable prices might be challenging due to the limited availability of recent sales data for comparison.
Tenant demand is relatively low in this area. With a total population of 4,280, only 25.3% of residents are renters. This means that the pool of potential tenants is smaller, making it harder to find occupants for rental properties. The combination of a modest population size and a lower-than-average renter share poses a challenge for maintaining a steady stream of tenants.
In conclusion, while the median home value offers a potential entry point for acquisition at a lower cost, the mismatch between FMR and market rents, along with the limited data on market liquidity and the smaller tenant pool, suggests that investing in ZIP 40828 carries significant risks. Landlords and small-portfolio investors should carefully consider these factors before committing resources to this market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.