Location: Knott County, KY | Metro: Knott 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 | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $164,286 | 0.71% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 41740 hinges on the available data points, which provide a partial picture of the market dynamics. On the axis of yield, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910, while the median home value stands at $98,922. This suggests that rental income could be a significant portion of the property's value, potentially offering a higher yield compared to areas where home values are much higher relative to rent.
However, the lack of specific market rent figures makes it challenging to fully assess the yield potential. Typically, if the market rent were significantly lower than the FMR, it would indicate a less lucrative rental environment. Conversely, if the market rent were closer to or exceeded the FMR, it would suggest a better yield. In this case, we must rely on the FMR alone, which indicates a moderate yield opportunity given the home value.
Moving to stability, the data reveals that there are 0.0% renters in ZIP 41740, suggesting an almost entirely owner-occupied area. This characteristic is usually associated with higher stability because owner-occupiers tend to have longer-term commitments to their homes, reducing turnover rates and vacancy risks. However, the absence of specific figures for days on market (DOM) and median income leaves us with incomplete information about the overall stability of the area.
Given the limited data, ZIP 41740 appears to lean towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The low percentage of renters supports a stable investment environment, though the yield potential remains somewhat uncertain without a direct comparison to market rents. Landlords and small-portfolio investors should consider this area suitable for long-term investments aimed at consistent cash flow rather than quick flips or speculative gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.