Location: Bell County, KY | Metro: Bell County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
The ZIP code 40902 is situated in a small, tight-knit community in Kentucky, characterized by a modest population of 558 residents. The rental market here is relatively small, with only 24.7% of the population renting their homes. This indicates a primarily owner-occupied area, suggesting a stable but limited pool of potential tenants. Given the median home value of $72,944, it's clear that the housing market in this region is affordable, appealing to low-income families who often rely on government assistance programs such as Section 8.
From an economic standpoint, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, which is notably lower than the current market rent of $1,036 as reported by the Census Bureau's American Community Survey. This discrepancy highlights a significant opportunity for landlords and small-portfolio investors who can leverage the higher market rents while still accepting Section 8 vouchers, thus maximizing profitability.
Considering the practical aspects of investing in this ZIP code, it leans more towards a hands-on value-add buyer rather than a hands-off voucher operator. The limited number of renters suggests that there might be competition among those seeking rental properties, particularly those participating in the Section 8 program. Therefore, investors who can actively manage properties, improve them, and ensure compliance with HUD standards will likely find greater success in this market. Such proactive involvement can also help mitigate risks associated with the smaller tenant pool and the potential challenges of operating in a less densely populated area.
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.