Section 8 Fair Market Rent (FMR) for ZIP 41503 - 2027

Location: Pike County, KY | Metro: Pike County, KY

Investment Score for ZIP 41503

N/A
Monthly Rent (2BR)
$1,100
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$770
1 Bedroom$840
2 Bedrooms$1,100
3 Bedrooms$1,310
4 Bedrooms$1,820
5 Bedrooms$2,111
6 Bedrooms$2,364
7 Bedrooms$2,553
8 Bedrooms$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
3BR $1,310 $129,090 1.01% B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
472
Median Household Income
$56,484
Housing Units
276
Renter Percentage
52.7%
Occupancy Rate
86.6%
Renter Occupied
126

The ZIP code 41503 is heavily weighted towards renters, with 52.7% of the population renting their homes. This makes it an ideal location for landlords and small-portfolio investors looking to attract Section 8 tenants. With a total population of 472, there's a significant base of potential voucher users.

The median household income in ZIP 41503 stands at $56,484, which means that the typical market rent of $723 consumes approximately 16.3% of the average monthly income. This calculation is derived from dividing the annual median income by 12 months to get the monthly figure, then dividing the monthly rent by this amount and multiplying by 100 to find the percentage.

Comparing the market rent to the Fair Market Rent (FMR) of $980, which is set for fiscal year 2026 for the metro area, the actual rent in ZIP 41503 is below the FMR threshold. This indicates that landlords in this area can potentially charge higher rents and still remain competitive with the voucher program, as long as they do not exceed the FMR limit.

A landlord in ZIP 41503 should expect a tenant pool that largely relies on rental assistance programs such as Section 8. These tenants will be individuals or families whose incomes fall within the guidelines for receiving housing vouchers. Given the lower market rent compared to the FMR, landlords have a reasonable opportunity to offer units that align with both the financial capabilities of the tenants and the requirements of the housing voucher program.

To summarize, ZIP 41503 is a renter-heavy area with strong demand for housing vouchers. The median income level supports a manageable rent burden for most tenants, making it feasible for landlords to participate in the Section 8 program without significant risk. The key to success lies in understanding the local income dynamics and setting rents that are attractive to voucher holders while maximizing returns within the FMR constraints.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.