Location: Harlan County, KY | Metro: Harlan County, KY
| 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 |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 40854 in Loyall, KY, under the Section 8 program are significant. Firstly, tenant turnover is likely to be high due to the disparity between the market rent of $688 and the Fair Market Rent (FMR) of $870 for the fiscal year 2026 in the metro area. This difference suggests that tenants may struggle to find alternative housing options outside of the Section 8 program, leading to frequent moves.
Vacancy exposure is another critical concern. With a Day on Market (DOM) status marked as N/A, it indicates that there might be limited data on how quickly properties are rented out, which can lead to prolonged vacancy periods and financial strain. Additionally, the deferred-maintenance exposure is noteworthy. Given the typical home value of $71,010 and a median income of $55,250, landlords may face challenges in maintaining properties to the required standards without incurring substantial costs.
However, these risks must be weighed against the high renter share of 36.5%. High renter density often correlates with higher demand for rental properties, including those supported by Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants willing to use their vouchers in the area.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP 40854 are moderate. While there are significant concerns regarding tenant turnover, vacancy exposure, and maintenance costs, the high renter share offers a counterbalance that can mitigate some of these issues.
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.