Location: Clay County, KY | Metro: Bell County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 40913 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $880, while the market rent, as per the Census ACS, is $681. This creates a $199 difference, or approximately 29%, where the FMR exceeds the market rent.
This scenario makes ZIP 40913 a favorable location for voucher tenants, turning it into a yield play for landlords and small-portfolio investors. Given that the FMR is higher than the market rent, landlords can potentially receive higher payments from the government for units rented to voucher holders than they would from open-market tenants. This is particularly beneficial considering that 47.9% of residents are renters, and the median income is $51,023, indicating a substantial portion of the population may rely on rental assistance.
The discrepancy between FMR and market rent suggests that landlords in ZIP 40913 can capitalize on the government's willingness to pay above the local market rate. This can help offset the costs associated with maintaining properties and managing tenants, making it a lucrative opportunity for those who understand the dynamics of the Section 8 program. However, it also means that landlords must ensure compliance with HUD regulations and maintain properties to meet quality standards to continue receiving the higher FMR-based payments.
In summary, the gap between the FMR and market rent in ZIP 40913 presents a unique investment opportunity for landlords and small-portfolio investors, allowing them to potentially earn higher yields than what the open market offers. This is especially relevant given the high proportion of renters and the median income level in the 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.