Location: Letcher County, KY | Metro: Letcher County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 40862 reveals a unique balance between yield and stability that is attractive to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $870, while the market rent stands at $657. This indicates a potential rental gap where properties could be priced closer to the FMR to maximize yields. However, the median home value of $95,378 suggests that flipping homes for quick profits may not be as lucrative due to the relatively lower property values compared to higher-end markets.
On the stability axis, 40862 shows a mixed picture. With 34.3% of residents being renters, there is a decent demand for rental properties. Unfortunately, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be rented out. The average household income of $41,992 provides insight into the financial capacity of tenants, indicating a moderate level of stability but also suggesting that rental prices must remain competitive to attract and retain tenants.
To classify 40862, it is neither a high-yield/low-stability flip-style market nor purely a steady-cashflow zone. Instead, it falls somewhere in between, offering opportunities for both rental income and potential appreciation. The higher FMR compared to the market rent allows for a modest yield increase when setting rents at or near FMR levels. At the same time, the significant portion of renters and moderate income levels ensure a steady demand for affordable housing, contributing to stability.
Conclusion: For landlords and small-portfolio investors, ZIP 40862 presents a balanced opportunity. By pricing rentals closer to the $870 FMR, investors can achieve higher yields. The 34.3% rental rate and $41,992 average income support stable cash flows, making it a suitable market for those seeking a mix of yield and stability.
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.