Location: Pike County, KY | Metro: Floyd County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 41605 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,040 for the fiscal year 2026 is lower than the current market rent of $1,100 based on Census ACS data. This discrepancy means that landlords may be receiving less than what the market dictates, potentially leading to financial strain if they rely solely on the FMR.
Acquisition in this area is relatively affordable. With a median home value of $119,463, it presents an opportunity for investors looking to purchase properties without spending excessively. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests a need for further investigation into the local real estate market dynamics. These metrics are crucial for understanding how quickly homes sell and whether there is pressure to reduce asking prices to facilitate sales.
Tenant demand in ZIP 41605 is modest but present. The area has a total population of 603, with 26.6% of residents being renters. This indicates a smaller pool of potential tenants compared to more densely populated areas. Nevertheless, the renter share is significant enough to suggest a viable market for rental properties, assuming the supply of rental units is not overwhelming.
A verdict on ZIP 41605 reveals a mixed picture. While the acquisition cost is low, the unfavorable rent math and modest tenant demand pose challenges. Investors should proceed cautiously, ensuring that they account for these factors and conduct thorough due diligence on property values and rental income expectations. The area's affordability could be a strong point, but it must be balanced against the risks posed by the other metrics.
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.