Location: Pike County, KY | Metro: Pike County, KY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $135,328 | 0.97% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 41557 provides a clear picture of potential investment yields under different rental scenarios. Given the median home value of $112,495, we can derive two gross-yields based on the annualized Fair Market Rent (FMR) and market rent.
First, consider the scenario where the annualized rent for a 2-bedroom unit is set at the Section 8 FMR of $980 per month. This translates to an annual rent of $11,760. The gross-yield in this case would be approximately 10.45%, calculated by dividing the annual rent by the median home value:
Gross-Yield = Annual Rent / Median Home Value
$11,760 / $112,495 = 10.45%
Second, let's examine the market rent scenario. Since the market rent for a 2-bedroom unit is not available, we cannot provide a precise gross-yield figure. However, it's important to note that the gross-yield would likely be higher than the FMR yield if market rents exceed the $980 monthly rate.
To determine which scenario is more realistic, we must consider the 7.5% renter density and the fact that the days-on-market (DOM) is not available. A 7.5% renter density suggests a relatively low demand for rental properties, which could indicate that the market rent might not significantly exceed the FMR. Additionally, without knowing the DOM, it's difficult to assess how quickly properties can be leased out, which affects the overall viability of rental investments.
Given these factors, the Section 8 FMR scenario with a gross-yield of 10.45% appears to be the more conservative and realistic estimate for ZIP code 41557. Investors should use this figure as a baseline when considering the potential returns on investment in this area, while also being prepared for the possibility that market conditions could lead to higher yields if market rents surpass the FMR.
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.