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)
The analysis of the Section 8 cap-rate scenario for ZIP code 41544 reveals two distinct possibilities based on the available data. The first scenario involves using the Fair Market Rent (FMR) for a 2-bedroom apartment, which is set at $980 per month for fiscal year 2026, reflecting a metropolitan area standard. The second scenario would be to consider the market rent, though it's noted as not applicable (N/A) in this context.
To derive the implied gross yield, we'll annualize the 2BR FMR. At $980 per month, the annual rent comes to $11,760. Given the median home value in ZIP 41544 is $76,412, the implied gross yield for the FMR scenario is calculated as follows:
$11,760 / $76,412 = 0.154 or 15.4%
This calculation provides a clear baseline for potential returns under the Section 8 program. However, the second scenario, where the market rent is considered, cannot be quantified due to the lack of specific data. In such cases, it's often assumed that market rents would exceed the FMR, potentially leading to a higher gross yield. Yet, without precise figures, we can only infer that the gross yield might surpass the 15.4% derived from the FMR.
Evaluating the realism of these scenarios, the 25.0% renter density suggests that a significant portion of the housing market is occupied by renters. This statistic supports the viability of rental investments, including those under the Section 8 program. However, the N/A-day Days on Market (DOM) figure leaves a critical gap in understanding the speed at which properties are rented out in this area, which could affect vacancy rates and thus the overall yield.
Given the data, the FMR-based scenario presents a concrete and calculable gross yield of 15.4%. This is a straightforward metric for investors to consider when evaluating the potential returns of a Section 8 investment in ZIP 41544. While the market rent scenario could offer better yields, its absence makes it less reliable for precise financial planning. Therefore, for now, the FMR-based gross yield stands as the most realistic and actionable figure for investors looking to enter this market.
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.