Location: Huntington-Ashland, WV | Metro: Carter County, KY HUD Metro FMR Area
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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $110,043 | 0.91% | C |
| 3BR | $1,320 | $180,561 | 0.73% | D |
U.S. Census Bureau data (2024)
In evaluating ZIP code 41168, located in Rush, KY, several key concerns arise regarding the feasibility of investing in Section 8 properties. These objections revolve around financial viability, tenant demand, and the adequacy of voucher amounts.
Objection 1: Will Fair Market Rent (FMR) of $910 cover the mortgage on a $139,566 home?
The skepticism stems from the perceived mismatch between the fair market rent and the potential mortgage costs. For a home valued at $139,566, assuming a typical 20% down payment, the mortgage would be on approximately $111,652.80. With an average interest rate of 5%, the monthly mortgage payment could range from $550 to $650, depending on the term length. At $910 FMR, the answer is yes; it will cover the mortgage. However, this does not account for other expenses such as property taxes, insurance, maintenance, and utilities, which must also be considered to ensure profitability.
Objection 2: Is there enough renter demand at 10.3%?
The rental vacancy rate of 10.3% raises questions about the availability of tenants willing to pay the required rent. A 10.3% vacancy rate indicates that nearly one in ten rental units is unoccupied, suggesting a moderate level of competition among landlords. While this rate is higher than desirable, it still leaves a significant portion of the housing market occupied, indicating that there is sufficient demand. To mitigate risk, investors should focus on maintaining high-quality, well-priced properties to attract tenants.
Objection 3: Will vouchers keep pace with $776 market rents?
The concern here is whether the Housing Choice Voucher program will provide sufficient subsidy to match the market rent of $776. The FMR set at $910 suggests that the voucher amount is likely to increase, but whether it will reach the market rent of $776 is uncertain. According to recent trends, voucher amounts have been adjusted annually based on local market conditions. Investors should monitor these adjustments closely. In the interim, the gap between voucher amounts and market rents can be managed through careful selection of lower-cost properties or by seeking additional subsidies from state and local programs.
To conclude, while ZIP 41168 presents some challenges, the data supports the potential for successful Section 8 investments. Careful management and strategic property selection are crucial to overcoming the identified obstacles.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.