Location: Claiborne County, TN | Metro: Bell 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 | $690 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $94,656 | 1.06% | B |
| 3BR | $1,240 | $153,406 | 0.81% | C |
| 4BR | $1,480 | $217,723 | 0.68% | D |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 40965, Middlesboro, KY, reveal a market in motion, characterized by specific rental and homeownership metrics that paint a picture of current conditions. The Fair Market Rent (FMR) for the area stands at $930, reflecting the federal government's benchmark for affordable housing in the metro region for fiscal year 2026. Meanwhile, the market rent, as per the Census ACS, is notably lower at $595, suggesting a gap between federally determined affordability standards and actual market rates.
The 0.2% price-cut share indicates that very few landlords are reducing their rents to attract tenants, implying a relatively stable rental market with consistent demand. However, the absence of day DOM (days on the market) data suggests that there might be limitations in understanding how quickly homes are being rented out. This could be due to low inventory levels or a steady flow of tenants willing to pay the listed rents.
The median home value of $114,823 is indicative of an affordable housing market, particularly when compared against the rental rates. This makes homeownership a viable option for many residents, potentially leading to a balanced market where neither supply nor demand significantly outpaces the other. However, with a 45.9% renter share, it's evident that nearly half of the population opts for renting over buying, which can exert long-term pressure on the rental market as demand remains high.
The high renter share also points to a scenario where economic factors or personal preferences keep a substantial portion of the population from transitioning into homeownership. This can create a sustained demand for rental properties, benefiting landlords who maintain competitive rents. Landlords and small-portfolio investors should focus on maintaining properties at or below the market rent level to capitalize on the steady rental demand.
In summary, ZIP 40965 presents a market where rental demand is strong but supply is likely well-matched to it. The significant renter share underscores a continuous pressure on the rental sector, making it a favorable investment opportunity for those looking to manage properties in this area.
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.