Location: Floyd 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 | $720 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $67,962 | 1.47% | A |
| 3BR | $1,330 | $91,045 | 1.46% | A |
U.S. Census Bureau data (2024)
The analysis for ZIP code 41649, specifically in Martin, KY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $970, while the Census ACS data indicates an average market rent of $381. This results in a disparity of $589 per month, or approximately 154.5% higher than the market rent.
The substantial difference between these two figures makes ZIP 41649 a prime location for a yield play through Section 8 tenancy. Landlords can capitalize on this discrepancy by renting properties to voucher holders at the FMR rate, which is significantly above the local market rate. Given that 35.9% of residents in Martin, KY are renters, there is a considerable demand for affordable housing options. With a median home value of $80,780 and a median income of $36,023, many households would struggle to afford housing without the assistance of Section 8 vouchers.
The FMR being higher than the market rent means that landlords who participate in the Section 8 program can receive rental payments that exceed what they could typically charge in the open market. This not only provides a higher yield but also ensures a stable source of income due to the government's role in subsidizing the rent. However, it is important to note that landlords must adhere to certain regulations and maintenance standards to remain eligible for the program, which can incur additional costs and responsibilities.
In conclusion, the gap between the FMR and market rent in Martin, KY, presents a lucrative opportunity for landlords and small-portfolio investors to maximize their returns through Section 8 tenancy. The higher payment received from the voucher program compared to the local market rate allows for better financial performance and stability, despite the need for compliance with federal housing guidelines.
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.