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)
A skeptical investor might raise several concerns about investing in ZIP code 41622, which is located in Eastern, Kentucky. Let's address these objections with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $900 (metro FY 2026) cover the mortgage on an $88,677 home?
The HUD Fair Market Rent for a one-bedroom apartment in ZIP code 41622 is $736/month. However, the FMR for the metro area is set at $900. This suggests that the metro FMR is more reflective of the rental market in 41622. To determine if this amount can cover the mortgage, we need to calculate the monthly mortgage payment based on typical lending rates. Assuming a 30-year fixed-rate mortgage at 5%, the monthly payment on an $88,677 home would be approximately $485. Therefore, the $900 FMR would comfortably cover the mortgage, leaving room for maintenance and other expenses.
Objection 2: Is there enough renter demand at 10.3%?
The 10.3% renter demand figure is concerning, as it indicates a relatively low proportion of renters in the ZIP code. However, this percentage must be considered in the context of the overall housing market. According to recent data, the median home value in 41622 has been increasing, suggesting some stability in the local economy. While the renter demand is lower than desirable, the potential for rental increases due to rising home values could mitigate this issue. Moreover, the ZIP code has 256 residents and 123 households, with an average of 2.08 persons per household, indicating a stable community structure.
Objection 3: Will vouchers keep pace with the market rents?
The data does not provide specific information on the utilization rate of housing vouchers in ZIP code 41622. However, given that the ZIP code is part of a rural area, it's likely that the voucher program plays a significant role in the rental market. The HUD FMR of $736 for a one-bedroom unit is below the metro FMR of $900, suggesting that vouchers might be more aligned with the lower end of the rental spectrum. If the local rental market remains stable and does not experience rapid inflation, vouchers should continue to support a portion of the rental demand.
In summary, while there are valid concerns regarding renter demand and voucher utilization, the FMR of $900 should adequately cover the mortgage on an $88,677 home. The local economy and housing market trends suggest a degree of stability, which could support rental growth and maintain a reasonable level of occupancy. However, further investigation into the specific voucher usage rates and detailed rental market trends would provide a more comprehensive analysis.
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.