Section 8 Fair Market Rent (FMR) for ZIP 41553 - 2027

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

Investment Score for ZIP 41553

A+

Monthly Rent (2BR)

$1,100

Median Price (2BR)

$62,108

1% Rule

1.77%

Annual Yield

21.25%

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
2BR	$1,100	$62,108	1.77%	A+
3BR	$1,310	$92,587	1.41%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,269

Median Household Income

$N/A

Housing Units

1,051

Renter Percentage

13.7%

Occupancy Rate

86.3%

Renter Occupied

124

The ZIP code 41553, encompassing Phelps, KY, is a rural area that offers unique opportunities for real estate investors, particularly those interested in the Section 8 housing market. The region's modest size and demographics present a straightforward landscape for investment analysis.

The Fair Market Rent (FMR) for the metro area including ZIP 41553 is set at $980 for fiscal year 2026, indicating the maximum rental assistance payment standard for a two-bedroom unit.
The average market rent in the area, according to the Census American Community Survey, stands at $254, which is significantly below the FMR, suggesting potential for higher returns on rental properties.
The median home value in ZIP 41553 is $72,375, making it an affordable market for acquiring rental properties.
Renters make up 13.7% of the housing stock, showing a smaller but potentially stable demand for rental units.
The median income figure is not available, which limits the ability to fully assess the financial health of potential tenants and their ability to pay market rents or Section 8 subsidies.
The number of days on the market (DOM) is also not available, which means there is no direct measure of how quickly homes are selling in this area.

Investors looking to enter the Section 8 housing market in ZIP 41553 can expect a modest but stable rental environment, with the potential to secure rental properties at a lower cost than the fair market rent allows. However, the lack of data on median income and days on the market introduces uncertainty regarding tenant stability and the speed of property turnover. Despite these gaps, the significant disparity between the market rent and the FMR presents a compelling opportunity for savvy investors to capitalize on the subsidies while keeping operational costs low due to the affordable nature of the local housing market.

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.