Location: Pike County, KY | Metro: Pike County, KY
| 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 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 41531 for Section 8 properties hinges on three key factors derived from the data provided.
1) Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $890. For a property valued at $83,728, the annual rent income would be $10,680 ($890 x 12 months). To determine if this clears debt service, you must calculate the total debt service, which includes principal and interest payments. If the DSCR is greater than 1, meaning the rental income exceeds the debt service, then the answer is yes. Otherwise, it is no. This calculation is critical as it directly impacts the financial viability of the investment.
2) Market Rent Comparison: The market rent for ZIP 41531 is listed as N/A, indicating that there is insufficient data to provide a comparative analysis against the FMR. Without knowing the exact market rent, it's impossible to determine if it's above, at, or below the FMR. Therefore, the answer here is it depends. You will need to conduct additional research to find out the actual market rents in the area. If market rents are significantly higher than the FMR, it might be a good idea to consider other investment opportunities where you can maximize your returns. However, if market rents are close to or below the FMR, the investment could be more attractive for Section 8 tenants.
3) Demand Analysis: In ZIP 41531, 13.4% of the population are renters. Additionally, the number of days on the market (DOM) is listed as N/A, suggesting that there might be limited data available regarding how quickly properties are rented. With only 13.4% of the population renting, the demand for rental properties is relatively low. However, if the DOM figure were available and indicated that properties are being rented quickly, this could suggest strong demand despite the lower percentage of renters. Given the current data, the answer is no, as the demand does not seem robust enough to ensure a steady stream of Section 8 tenants. But, if further investigation reveals a short DOM, the decision could shift to a cautious yes, pending the answers to the first two questions.
To summarize, a landlord considering an investment in ZIP 41531 for Section 8 properties should first confirm that the FMR of $890 can cover the debt service on a property valued at $83,728. Second, they must assess the market rent relative to the FMR, which currently cannot be done due to insufficient data. Lastly, the relatively low percentage of renters combined with the lack of DOM data suggests weak demand. Thus, unless the market rent is below the FMR and the DOM is short, the recommendation based on the available data is to avoid this ZIP code for Section 8 investments.
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.