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 cap-rate analysis for ZIP code 41606 provides a clear picture of potential investment returns under different scenarios. With a median home value of $73,711, we can derive the gross yield based on the annualized Fair Market Rent (FMR) for a 2-bedroom property, which is set at $900 per month for fiscal year 2026. This translates into an annual rental income of $10,800.
To calculate the implied gross yield using the FMR, divide the annual rental income by the median home value:
\( \text{Gross Yield} = \frac{\$10,800}{\$73,711} \approx 14.65\% \)
This figure suggests that if a landlord were to rely solely on Section 8 vouchers for renting out a property in ZIP 41606, they could expect a gross yield of approximately 14.65%. However, this scenario does not consider market rents, which are currently not available for this area. Given the lack of market rent data, it's challenging to provide a precise comparison; however, we can infer that market rents typically exceed FMRs, potentially offering a higher gross yield.
The renter density in ZIP 41606 stands at 18.6%, indicating a relatively low proportion of residents who are renters. This statistic implies that landlords might face competition from homeowners, which could affect the occupancy rate and, consequently, the overall profitability of rental properties. Additionally, the absence of data regarding the days on market (DOM) makes it difficult to assess how quickly properties might be rented out and whether there is a significant vacancy risk.
Given the current data, the gross yield derived from the FMR is the most concrete figure available. While market rents would likely offer a better return, the uncertainty around these figures means that the 14.65% gross yield based on FMR is a reliable benchmark for investment considerations in ZIP 41606. Landlords and small-portfolio investors should use this as a starting point for their financial modeling, factoring in local market conditions and their own projections for market rents and occupancy rates.
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.