Location: Knox County, KY | Metro: Bell County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 40939 presents several challenges for landlords considering Section 8 investments. Firstly, the discrepancy between the market rent and the Fair Market Rent (FMR) of $870 (for fiscal year 2026 in the metro area) could lead to tenant turnover. Landlords may struggle to attract tenants willing to pay the lower FMR rate, which can result in frequent changes in occupancy.
Vacancy exposure is another concern. With an average Days on Market (DOM) that is currently unspecified, it's difficult to gauge how quickly properties might be rented out. This uncertainty increases the risk of prolonged vacancies, which can significantly impact cash flow and profitability.
Deferred maintenance is also a potential issue. The lack of data regarding typical home values and median incomes in the area suggests that residents may not have the financial means to cover unexpected repairs or maintenance costs. This could lead to higher expenses for landlords who must shoulder these responsibilities.
Despite these risks, the analysis reveals a critical factor: the 0.0% renter share in ZIP 40939. Although this figure seems unusually low and may require further investigation, it generally indicates a low concentration of renters. However, in the context of Section 8 investments, a high renter density typically correlates with increased demand for housing vouchers. This low renter share might imply less competition for Section 8 tenants, potentially simplifying the rental process.
Verdict: High risk for a first-time Section 8 landlord.
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.