Location: Floyd County, KY | Metro: Floyd 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $134,885 | 0.9% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $870 for ZIP 41601 can adequately cover the mortgage payments on a home valued at $116,929. This concern stems from the need to ensure that rental income will be sufficient to meet financial obligations. To address this, it's important to consider the typical mortgage payment for a property of this value. Assuming a 30-year fixed-rate mortgage at an average interest rate of around 4%, the monthly mortgage payment for a $116,929 home would be approximately $550. Therefore, the FMR of $870 does provide a buffer above the mortgage payment, allowing for maintenance, insurance, and other costs.
The second objection could be about the level of renter demand in ZIP 41601, which stands at 23.2%. This percentage represents the share of households that rent their homes rather than own them. While this figure is relatively low compared to national averages, it still indicates a significant number of potential renters. The key here is understanding the local rental market dynamics. If the area has limited rental options, even a smaller percentage can translate into a steady stream of tenants. Additionally, the rental vacancy rate should be considered to gauge the competition for rental units. However, the data provided does not include the vacancy rate, so we cannot definitively assess the ease of finding tenants.
Lastly, an investor might wonder if housing vouchers will keep pace with the market rents of $779. The voucher amount is typically adjusted annually based on changes in the cost of living and housing market conditions. In ZIP 41601, the current voucher amount is not specified, but it's crucial to note that vouchers often do not cover the entire rent. They usually aim to pay a portion of the rent, up to a certain limit. The Housing Choice Voucher Program, also known as Section 8, is designed to help low-income families afford decent housing. As such, while vouchers may not fully cover the $779 market rent, they are intended to subsidize a significant portion of it, making it possible for voucher holders to rent in this area. The program's effectiveness in covering rent varies by location and time, so continuous monitoring of voucher adjustments and local rental trends is advisable.
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.