Location: Knott 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 | $680 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $69,274 | 1.75% | A+ |
U.S. Census Bureau data (2024)
36.6% of residents in ZIP 41630 are renters, indicating a significant demand for rental properties. The $684 market rent, as reported by the Census ACS, suggests that landlords can expect this average income from their tenants. However, it's important to note that the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,040, which is notably higher than the current market rent. This discrepancy presents an opportunity for landlords to potentially increase rents without significantly deterring demand.
$61,085 is the median home value in ZIP 41630, which is relatively low compared to national averages, making it an attractive market for first-time buyers and investors alike. The median income of $42,417 supports the affordability of these homes but also highlights the importance of maintaining competitive rental rates to attract tenants.
The lack of data on days on market (DOM) and the percentage of price-cut shares indicates stability in the local real estate market. Properties are likely selling at or near asking price, and once listed, they are quickly finding buyers. This stability is further reinforced by the consistent gap between the FMR and the actual market rent, suggesting a balanced market where both landlords and tenants find reasonable terms.
In conclusion, the $1,040 FMR provides a benchmark for rental pricing that landlords should consider when setting their own rates. Given the $684 market rent and the 36.6% renter share, there is room for growth in rental income while still remaining within the reach of most tenants. For Section 8 investors, the difference between the FMR and market rent means that properties could be rented out at market rates, with potential for higher profits if the landlord qualifies for the Section 8 program. The verdict for Section 8 participation in ZIP 41630 is positive, given the favorable conditions for both affordable housing and investment returns.
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.