Location: Perry County, KY | Metro: Perry County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
The analysis of the Section 8 cap-rate picture for ZIP code 41736 in Unknown, Kentucky, requires an understanding of the Fair Market Rent (FMR) and the median home value. However, the provided data indicates that the median home value and market rent are not available, which complicates a precise calculation of the gross yield.
In the scenario where we use the annualized 2BR FMR of $960 for FY 2026, we can derive a basic understanding of potential gross yields. The FMR represents the maximum amount that a landlord can charge for a Section 8 rental unit. With this figure, if we assume the typical Section 8 payment standard covers a significant portion of the FMR, the gross yield would be directly tied to the FMR without additional market rent data.
The lack of median home value data means we cannot calculate a traditional cap rate, which is the ratio of the net operating income (NOI) to the current market value of the asset. Without knowing the property values, it's impossible to determine the gross yield based on a comparison between the FMR and the median home value. This leaves us with a less comprehensive analysis than desired.
Given the unavailability of critical data points such as market rent and median home value, along with the unknown renter density and days on market (DOM), it's challenging to provide a realistic assessment of the gross yield. The absence of these figures suggests that landlords and small-portfolio investors must rely on local real estate trends and consult with local realtors or property managers to get a clearer picture of the rental market dynamics in ZIP 41736.
To proceed with a more informed decision, investors should gather additional data on property values and current market rents in the area. This will allow them to compute a more accurate gross yield and cap rate, essential metrics for evaluating the potential profitability of properties under Section 8 housing programs.
Data Sources: FMR data from HUD (2027).
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.