Location: Pike 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $106,327 | 0.86% | C |
| 3BR | $1,210 | $151,815 | 0.8% | D |
| 4BR | $1,400 | $219,842 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP code 41653 is located in Prestonsburg, Kentucky, a small town known for its rural charm and community spirit. With a total population of 11,103, the area has a modest number of residents, and 30.6% of them are renters. The median household income in this ZIP code stands at $40,542, which is indicative of a middle-income community. The median home value in ZIP 41653 is $130,196, suggesting that it is an affordable area for both homeowners and potential investors.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $890. However, the actual market rent, according to Census ACS data, is significantly lower at $636. This discrepancy between the FMR and the market rent presents an opportunity for Section 8 investors, as it means that there is a higher likelihood of qualifying properties for the housing assistance program without having to significantly increase the rent beyond the current market rate.
The question remains whether this ZIP code is better suited for a hands-off voucher operator or a hands-on value-add buyer. Given the lower market rent compared to the FMR, and the fact that Prestonsburg is a small, rural town, it appears that a hands-off approach could be successful. Landlords and small-portfolio investors can expect steady, government-backed rental income without needing to invest heavily in property improvements or management services. However, for those inclined towards a more hands-on strategy, there might be opportunities to enhance property values and rents over time, especially if targeting upgrades to attract non-voucher tenants who can afford the FMR rates.
In conclusion, ZIP 41653 offers a balanced environment for Section 8 investment, with a mix of affordability and government support. Investors should consider their risk tolerance and desired level of involvement when deciding on the best strategy for this ZIP code.
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.