Location: Harlan County, KY | Metro: Harlan County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 40865 might have several concerns regarding the feasibility of investing in rental properties. One primary objection is whether the Fair Market Rent (FMR) of $910 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a property valued at $90,201. The short answer is that it depends on the interest rate and loan terms. Assuming a conventional 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on a $90,201 home would be approximately $475. This leaves a significant margin above the mortgage payment, suggesting that the FMR can indeed cover the mortgage and provide some profit.
The second concern revolves around the demand for rental properties in ZIP 40865, given that only 11.7% of the population are renters. While this percentage seems low, it's important to note that the actual number of potential renters can still be substantial. A lower rental percentage does not necessarily indicate a lack of demand; it could mean that homeownership is more prevalent, which is often a positive sign for the local economy. However, the data does not provide a detailed breakdown of the rental market size, so it's difficult to make a definitive statement about the level of demand without further research into the specific rental trends and vacancy rates.
A third objection is whether housing vouchers will keep pace with the local market rents. Unfortunately, the data does not specify the current market rent or the voucher amounts for ZIP 40865. Therefore, it's impossible to accurately assess if the voucher values will match the increasing market rents. Typically, voucher programs aim to cover a certain percentage of the FMR, but local adjustments and funding levels can vary widely. For a thorough analysis, one would need to consult the local housing authority or other sources for the most recent voucher data and compare it against the current market rents.
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.