Location: Breathitt County, KY | Metro: Breathitt County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 41390 in Whick, Kentucky, reveals a significant gap between the Federal Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR for a two-bedroom apartment is set at $880 per month. However, the market rent for a two-bedroom apartment is reported to be lower at $519 per month. This represents a gap of $361 per month, or approximately 70%.
The discrepancy between the FMR and the market rent makes ZIP 41390 a yield play for landlords and small-portfolio investors. Given that the median income in the area is relatively low at $31,445 per year, the FMR provides a higher guaranteed income stream for properties rented to voucher tenants compared to the open-market rate.
This higher rental income from voucher tenants can offset the lower median income of the area, which is 43.0% renters. It means that landlords can benefit from the government subsidy, even if the overall economic conditions suggest a lower market rent. The median home value in ZIP 41390 is not readily available, but given the low median income and high percentage of renters, it is reasonable to infer that property values are also lower.
In conclusion, the higher FMR compared to the actual market rent makes ZIP 41390 a favorable location for investors looking to maximize returns through the Section 8 program. The economic context of the area supports this strategy, as it aligns with the lower median income and high percentage of renters.
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.