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 |
The analysis for ZIP code 41549 in Unknown, Kentucky, reveals a challenging scenario for determining the Section 8 cap rate due to limited data availability. The Family Monthly Income (FMI) for a two-bedroom unit under the Section 8 program for fiscal year 2026 is set at $980. This figure represents the annualized rental payment that landlords can expect per unit if they participate in the Section 8 program.
Given the median home value is not available, we cannot directly calculate the implied gross yield for a market rental scenario. However, the absence of market rent data suggests that the local rental market might be underdeveloped or less competitive, which could indicate a reliance on government programs such as Section 8 for tenant acquisition.
In the context of the Section 8 program, the gross yield can be calculated based on the annual rental income of $980 multiplied by 12 months, totaling $11,760 per year. If we were to assume a typical property value in this area, say $100,000 (for illustrative purposes only), the gross yield would be 11.76%. This calculation assumes no vacancy and no additional costs, which are unrealistic; thus, it serves merely as a baseline for comparison.
Considering the lack of data on renter density and days on market (DOM), it's difficult to provide a precise comparison between the Section 8 scenario and the market rental scenario. However, the non-availability of market rent data implies that the local rental market may not offer a significant premium over the Section 8 rates, making the program an attractive option for landlords seeking stable income sources.
Landlords should evaluate the cost structures and potential subsidies carefully before deciding whether to participate in the Section 8 program. The gross yield comparison, while limited, suggests that the program offers a stable income stream that, although lower than potential market rates, provides security and predictability in a less defined rental market environment.
Data Sources: FMR data from HUD (2027).
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.