Section 8 Fair Market Rent (FMR) for ZIP 40831 - 2027

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

Investment Score for ZIP 40831

A+

Monthly Rent (2BR)

$910

Median Price (2BR)

$56,371

1% Rule

1.61%

Annual Yield

19.37%

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	$1,190
5 Bedrooms	$1,380
6 Bedrooms	$1,546
7 Bedrooms	$1,670
8 Bedrooms	$1,754

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$910	$56,371	1.61%	A+
3BR	$1,190	$116,913	1.02%	B
4BR	$1,190	$177,451	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,789

Median Household Income

$35,404

Housing Units

2,431

Renter Percentage

43.3%

Occupancy Rate

89.1%

Renter Occupied

939

The Harlan, KY area, represented by ZIP code 40831, is a small community nestled in the Appalachian Mountains, known for its natural beauty and rich cultural heritage. Despite its picturesque setting, the real estate market here reflects broader economic challenges faced by rural areas in the United States. This analysis will highlight key metrics that provide insight into the rental and homeownership landscape, offering a clear picture for potential investors.

The Fair Market Rent (FMR) for a two-bedroom apartment in the Harlan metro area for fiscal year 2026 is set at $870 per month, indicating the government's benchmark for affordable housing.
The average market rent for properties in Harlan, according to Census American Community Survey (ACS) data, stands at $620 per month, suggesting a gap between market rates and government-set benchmarks.
The median home value in Harlan is $100,689, which is significantly lower than the national average, making it an attractive option for first-time buyers and investors looking for entry-level opportunities.
Renters make up 43.3% of the local housing market, showing a substantial demand for rental properties and potentially indicating a need for affordable housing options.
The median household income in Harlan is $35,404, reflecting the economic conditions that influence both rental and purchase decisions in the area.

Investors considering the Harlan, KY market should note the disparity between the Fair Market Rent and the actual market rent, suggesting potential opportunities for properties priced just below the FMR threshold. The high percentage of renters indicates a robust demand for rental units, though the relatively low median income means that targeting affordable housing could be particularly lucrative. The median home value also points to a market where properties can be acquired at a lower cost compared to many other regions, providing a solid foundation for investment strategies focused on either rental or fix-and-flip opportunities.

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.