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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $133,261 | 0.89% | C |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 40935 reveals several potential challenges for landlords considering Section 8 participation. Tenant turnover is a significant concern, with the market rent at $719 being notably lower than the Fair Market Rent (FMR) of $870 for FY 2026 in the metropolitan area. This discrepancy can lead to higher tenant mobility, making it difficult to secure long-term, stable tenancies.
Vacancy exposure is another issue, as the Days on Market (DOM) data is currently unavailable. This lack of information makes it challenging to predict how quickly properties might fill up once they become vacant, which can impact cash flow and overall profitability.
Deferred maintenance poses a third risk. With a typical home value of $110,670 and a median income of $23,157, there is limited financial buffer for landlords to address unexpected repairs or maintenance issues without significant strain on their resources. This financial constraint can result in deferred maintenance, potentially leading to more substantial repair costs in the future if not managed proactively.
However, these risks must be weighed against the high renter share in the area, which stands at 34.7%. High renter density typically translates into a robust demand for rental housing, including units that accept Section 8 vouchers. This strong demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as landlords are likely to have a steady pool of tenants to choose from.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.