Location: Johnson County, KY | Metro: Floyd 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 | $660 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $134,502 | 0.89% | C |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 41265 under the Section 8 program begin with tenant turnover. With the market rent set at $795 compared to the Federal Market Rent (FMR) of $870 for the fiscal year 2026 in the metropolitan area, landlords might experience higher turnover rates due to the discrepancy between the subsidized amount and the actual market rate. This can lead to increased administrative costs and time spent on screening new tenants.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant. However, given the high renter share of 15.0%, there is likely to be a steady demand for rental units, which could mitigate this risk somewhat.
Deferred maintenance poses a significant risk due to the lower median income of $35,833 compared to the typical home value of $130,201. Tenants with limited financial resources may struggle to keep up with necessary repairs and maintenance, leading to potential property degradation over time. Landlords must be prepared to invest in regular upkeep to ensure the property remains in good condition.
Despite these risks, the high concentration of renters in ZIP 41265 suggests strong demand for housing vouchers. A higher renter density often translates into greater competition for Section 8 vouchers, which can provide a stable source of income for landlords. The voucher system guarantees timely payments, reducing the likelihood of rent delinquency and default.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 41265 is moderate. While challenges such as tenant turnover and deferred maintenance exist, the robust demand for rental housing and vouchers offers a balanced opportunity for stable returns.
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.