Location: Knox County, KY | Metro: Knox County, KY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $163,121 | 0.72% | D |
U.S. Census Bureau data (2024)
The ZIP code 40923 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern due to the disparity between market rents and the Fair Market Rent (FMR) of $870 for FY 2026 in the metro area. This mismatch can lead to higher tenant churn, as market conditions push rents above the FMR, making it difficult to find tenants willing to pay the lower subsidized rate.
Vacancy exposure is another critical issue. While the Days on Market (DOM) is not available, a typical home value of $159,476 paired with a median income of $47,865 suggests that many residents may struggle to afford housing, potentially leading to longer vacancy periods. The financial pressure on local residents could result in a slower rental market, increasing the risk of prolonged vacancies.
Deferred maintenance is also a notable risk. With a median income significantly lower than the typical home value, landlords might face difficulties in keeping properties up to code without substantial out-of-pocket expenses. Section 8 properties must meet Housing Quality Standards (HQS), and maintaining these standards with limited financial resources could strain operations.
Despite these risks, the high renter share of 32.1% points towards a robust demand for rental properties, which often translates into a higher demand for Section 8 vouchers. In areas with a large number of renters, the likelihood of finding tenants who qualify for and are interested in Section 8 vouchers increases, mitigating some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.