Location: Johnson County, KY | Metro: Lawrence County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The ZIP code 41254 presents several challenges for landlords considering Section 8 investments. First, tenant turnover is a significant concern due to the disparity between market rent and the Fair Market Rent (FMR) of $870 for fiscal year 2026, which is set based on metropolitan averages. This discrepancy can lead to tenants leaving when they find housing that better fits their budget, creating instability for landlords.
Vacancy exposure is another issue, as the Days on Market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant between tenancies, potentially leading to financial strain during these periods.
The deferred maintenance exposure is notable given the typical home value of $160,097. With the median income data not available, it's unclear whether residents can afford necessary repairs and maintenance beyond the basics, which could increase the burden on landlords to maintain properties to acceptable standards.
However, the risks are somewhat mitigated by the high renter density in the area, with 14.6% of residents being renters. High renter density often translates into higher demand for rental properties, including those accepting Section 8 vouchers. This suggests that there will likely be a steady pool of potential tenants, which can help ensure consistent occupancy rates.
Verdict: Moderate 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.