Section 8 Fair Market Rent (FMR) for ZIP 40982 - 2027

Location: Knox County, KY | Metro: Knox County, KY

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

168

Median Household Income

$16,442

Housing Units

Renter Percentage

11.6%

Occupancy Rate

69.7%

Renter Occupied

To decide whether to invest in ZIP code 40982 for Section 8 properties, follow this decision tree:

Does the Fair Market Rent (FMR) of $870 cover the debt service on a property?
- If the FMR does not cover the debt service, the answer is No. Do not proceed with the investment.
- If the FMR covers the debt service, move to the next question.
Is the market rent above, at, or below the FMR?
- If market rent is above FMR, consider the demand for Section 8 properties.
- If market rent is at or below FMR, the answer is It Depends on the demand for these units.
Are 11.6% of residents renting and the days on market (DOM) sufficient to meet demand?
- If the DOM is low and indicates strong demand, the answer is Yes. Proceed with the investment.
- If the DOM is high, indicating weak demand, the answer is No. This area may not be suitable for Section 8 investments.

The analysis hinges on the financial viability of Section 8 properties in 40982. With an FMR of $870, landlords must ensure that this amount is sufficient to cover their mortgage payments, property taxes, insurance, and other costs associated with owning a rental property. If the FMR does not meet these obligations, investing in this ZIP code would not be financially sound.

Next, compare the FMR against the current market rent. If the market rent is higher than the FMR, it suggests that landlords might find it challenging to fill vacancies with Section 8 tenants due to the lower payment rates. However, if the market rent is at or below the FMR, it aligns better with the payment standards set by the housing authority, making it easier to attract Section 8 tenants.

Finally, assess the demand. In ZIP 40982, 11.6% of the population are renters. The critical factor is the DOM, which reflects how quickly rental units are filled. A low DOM indicates strong demand, supporting the viability of Section 8 properties. Conversely, a high DOM suggests weak demand, potentially leading to prolonged vacancy periods and reduced income.

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.