Section 8 Fair Market Rent (FMR) for ZIP 41540 - 2027
Location: Pike County, KY | Metro: Pike County, KY
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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$64,250
When considering whether to purchase properties in ZIP code 41540 for Section 8 investment, follow this decision tree:
- Does the FMR of $980 (for metro FY 2026) cover the debt service on a property?
- If yes, proceed to the next question.
- If no, do not invest in this area for Section 8. The Federal Market Rent (FMR) must be sufficient to meet the mortgage payments and other costs associated with owning the property.
- Is the market rent above, at, or below the FMR?
- If the market rent is above $980, it indicates strong demand for rental properties, which can be beneficial for Section 8 landlords as they can potentially charge higher rents to non-Section 8 tenants.
- If the market rent is at $980, it suggests that the area is perfectly aligned with Section 8 rates, making it a stable but less lucrative option.
- If the market rent is below $980, it might indicate that there's little profit margin beyond what is covered by Section 8 subsidies. This could make the investment less attractive unless you're looking for a stable income source.
- Are 25.2% of residents renters and does the average Days on Market (DOM) support sufficient demand?
- The 25.2% rental rate means a quarter of the population relies on renting. This is a moderate indicator of demand.
- The DOM figure is missing, but if it's low (typically under 30 days), it implies quick turnover and high demand for rentals, supporting a positive outlook for Section 8 investments.
- A higher DOM suggests lower demand, which would make the investment less appealing as it might take longer to find tenants.
Based on the available data, if the FMR of $980 clears the debt service and the market rent is above or at FMR, then the answer is yes. However, if the market rent is below FMR, the answer is it depends on your investment goals and risk tolerance. Lastly, ensure that the DOM supports sufficient demand; otherwise, the answer shifts towards no due to potential difficulties in tenant acquisition.
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.