Location: Pike County, KY | Metro: Pike County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 41558 for Section 8 investment should follow this decision tree:
Step 1: Clear Debt Service
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $890. For a property valued at $90,148, the monthly mortgage payment would be approximately $480, assuming a 30-year fixed-rate mortgage at an average interest rate of 5%. This means that the FMR of $890 does indeed cover the debt service. The difference between FMR and the estimated mortgage payment is $410 per month, providing a buffer for other expenses.
Step 2: Market Rent Comparison
The Census ACS reports the market rent in ZIP 41558 at $597. Since $597 is below the FMR of $890, landlords can expect to receive higher rents when participating in the Section 8 program. This discrepancy suggests that the program could provide better income stability compared to the local rental market.
Step 3: Demand Analysis
In ZIP 41558, 27.6% of residents are renters. However, the data does not provide Days on Market (DOM), which would indicate how quickly properties are rented out. Given the percentage of renters and the absence of DOM data, we must rely on the FMR and market rent comparison for guidance.
If the answer to Step 1 is yes, and the answer to Step 2 indicates that market rent is below FMR, then the answer to whether you should buy here for Section 8 is yes. The higher FMR compared to market rent provides a financial advantage. Despite the lack of specific DOM data, the significant portion of renters (27.6%) implies a steady demand for rental housing.
If the FMR does not cover debt service or if market rent is above FMR, the decision would be no. However, these conditions do not apply to ZIP 41558 based on the available data.
The decision tree for ZIP 41558 clearly shows that the financials align favorably with Section 8 investment criteria, making it a viable option for landlords looking to participate in the program.
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.