Location: Breathitt County, KY | Metro: Breathitt County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 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 analysis for ZIP Code 41317 in Clayhole, KY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $890, while the median home value is listed at $30,200. However, the current market rent is not available, which complicates the direct comparison.
With 13.0% of residents being renters and the median household income at $18,906, it's evident that many tenants rely on housing vouchers. The FMR is higher than the median home value, indicating that voucher tenants could potentially provide a steady rental income for properties below market rates.
If the FMR exceeds the actual market rent, landlords and small-portfolio investors can capitalize on this discrepancy by attracting voucher tenants. This scenario transforms the investment into a yield play, where the guaranteed income from housing vouchers ensures a consistent return on investment.
Conversely, if the market rent were to be higher than the FMR, landlords would face a challenge in maintaining profitability without charging above voucher rates. The cost of housing voucher tenants below open-market rates means landlords must manage their expenses carefully to remain profitable.
In conclusion, the potential for a yield play exists if the FMR is indeed higher than the current market rent. Investors should focus on properties that can be rented at or near the FMR to maximize returns given the economic context of ZIP Code 41317.
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.