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)
The potential pitfalls of investing in ZIP code 41667 through the Section 8 program include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. Tenant turnover could be higher than anticipated due to the disparity between the market rent, which is currently unavailable, and the Fair Market Rent (FMR) of $910 for fiscal year 2026, based on metro area standards. This difference suggests that landlords might struggle to find tenants willing to pay the required market rates, leading to increased turnover.
Vacancy exposure is another critical concern. The Days on Market (DOM) figure is not available, but this implies that properties might remain vacant for longer periods, affecting cash flow and profitability. Given the typical home value of $58,175 and the median income of $40,197, there's a notable risk of deferred maintenance. Landlords must be prepared to invest in property upkeep to ensure compliance with housing quality standards, which can be costly if the income from rental properties does not cover these expenses adequately.
However, the risks must be weighed against the unique characteristic of ZIP 41667: it has a 0.0% renter share. High renter density typically correlates with higher demand for housing vouchers, such as those offered through the Section 8 program. In ZIP 41667, the absence of renters suggests a lower competition for vouchers, potentially making it easier for landlords to secure tenants with vouchers. This could mitigate some of the risks associated with vacancy and maintenance costs, as landlords would have a more stable tenant base.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 41667 is moderate. While there are significant risks related to tenant turnover and maintenance costs, the unique situation of having no existing renters could provide an advantage in securing voucher holders, thus stabilizing occupancy and reducing financial strain.
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.