Location: Magoffin County, KY | Metro: Magoffin County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The ZIP code 41632 presents several challenges for potential Section 8 landlords and small-portfolio investors. Tenant turnover can be a significant issue, especially considering that the market rent is currently unknown but the Fair Market Rent (FMR) for fiscal year 2026 is set at $910. This uncertainty can lead to difficulty in attracting and retaining tenants, impacting cash flow stability.
Vacancy exposure is another critical risk factor. The days on market (DOM) for properties in this area is not available, which suggests a lack of transparency regarding how quickly units are filled. In areas where DOM is prolonged, landlords face higher costs associated with vacancy, including lost rent and increased marketing expenses.
Deferred maintenance is also a concern. With an unknown typical home value and a median household income of $27,143, there's a risk that residents may not have the financial capacity to address maintenance issues promptly. This can result in higher repair and maintenance costs for landlords, potentially straining their budgets.
Despite these risks, the high renter share of 35.6% indicates a robust demand for rental housing, which often translates into a higher number of Section 8 voucher holders seeking accommodations. This can mitigate some of the risks associated with tenant turnover and vacancy rates, as there is a steady pool of eligible renters.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 41632 is moderate. While there are notable risks, particularly around market rent uncertainty and deferred maintenance, the strong renter base offers a significant counterbalance.
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.