Location: Harlan County, KY | Metro: Harlan County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The median income in ZIP code 40855 stands at $29,891, which places significant constraints on the ability of households to afford the market rate rent of $889 per month. This figure represents a substantial portion of their annual income, making it challenging for residents to find housing that fits comfortably within their budget. When comparing the market rate to the Fair Market Rent (FMR) set at $990 for metro areas in fiscal year 2026, it becomes evident that even the government-set standards exceed what many households can realistically pay.
The affordability gap in ZIP 40855 means that landlords face stiff competition when seeking tenants who can pay the market rate. With 30.9% of the 744 residents being renters, the demand for affordable housing is high. Landlords must consider the financial realities of their potential tenants and the likelihood that many will rely on rental assistance programs to secure housing.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: the voucher route offers a more stable income source given the economic conditions of the area. While the FMR of $990 is slightly higher than the market rate, accepting vouchers ensures a steady stream of rent payments without the risk of non-payment that can come with relying on cash-paying tenants with limited financial resources. Landlords should prepare to be flexible and competitive in terms of pricing and amenities to attract both voucher recipients and those able to pay cash, but prioritizing the former could lead to greater long-term stability and success in this market.
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.