Location: Floyd County, KY | Metro: Floyd County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 41604 is centered on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $900 per month for fiscal year 2026. In contrast, recent rental listings outside of ZIP 41604 indicate market rents ranging from $600 to $1,950 per month. This places the FMR below the market rate, revealing a gap of at least $100 to $1,050 per unit.
To quantify this gap, let's take the average of the lowest and highest market rents found ($600 and $1,950), which is $1,275. This means the FMR is $375 below the average market rent, representing a 30% discount. This discrepancy can be costly for landlords who accept Section 8 vouchers, as they receive less than the market rate for their properties.
The context of ZIP 41604 is crucial for understanding this analysis. Only 5.8% of residents are renters, indicating a primarily owner-occupied area. The median home value stands at $66,927, suggesting modest economic conditions. However, the median income is not available, making it difficult to assess the financial capacity of potential voucher holders.
Given these factors, landlords should carefully consider the implications of accepting Section 8 vouchers. While it can provide a steady stream of income, it also means renting below market rates, which could impact profitability. Small-portfolio investors must weigh the benefits of guaranteed payments against the lower yields compared to the open market.
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.