Location: Lawrence County, KY | Metro: Carter County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $860 for ZIP 41132 in fiscal year 2024 will adequately cover the mortgage on a typical home. According to recent data, the median home value in ZIP 41132 is $101,600, which is notably lower than the national average. This suggests that the mortgage payments on a home in this area should be relatively affordable, especially when considering current mortgage rates. However, without specific mortgage rate information for ZIP 41132, it's difficult to provide a precise figure.
The investor could also express concern over the level of renter demand, given that only 32.0% of housing units are rented. While this percentage is indeed low, the rental vacancy rate in ZIP 41132 is reported to be 0.0%, indicating a strong local demand for rental properties relative to supply. This tight market means that landlords who offer competitive rentals can expect to fill vacancies quickly, despite the overall low rental rate.
Another objection might be whether vouchers will keep pace with the local market rents. The Fair Market Rents are set by HUD to reflect the 40th percentile of market rents, meaning that 60% of rental units are priced higher. In ZIP 41132, the FMR of $860 should generally align with the market conditions, but it's important to note that the actual voucher amount may vary based on individual circumstances and the specific terms of the Housing Choice Voucher program. To ensure consistent income, landlords should consider the broader rental market trends in addition to voucher coverage.
In summary, while the FMR of $860 might not fully cover the mortgage on a typical home in ZIP 41132, the relatively low median home value and strong local rental demand suggest that the investment can still be viable. Landlords should also be aware that voucher amounts are designed to meet the needs of low-income families, and while they may not always match the highest market rents, they can provide a stable source of income in this tight rental market.
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.