Location: Knott County, KY | Metro: Knott County, KY
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 41772 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $870 for fiscal year 2026 in the metropolitan area. This gap can lead to difficulties in attracting tenants who qualify for the program, potentially increasing turnover rates.
Vacancy exposure is another critical issue. With no data on the days on market (DOM), it's challenging to predict how long properties might remain vacant. High vacancy periods can significantly impact cash flow, making this an important consideration for any investor.
Deferred maintenance poses a threat as well. Without specific figures on the typical home value and median income, it's difficult to gauge the financial capacity of residents to maintain homes to the required standards. Poor maintenance can lead to higher repair costs and potential compliance issues with Section 8 requirements.
However, these risks must be weighed against the substantial 26.0% renter share in the area. High renter density typically correlates with a higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The presence of many renters also suggests a diverse market, potentially reducing the impact of individual tenant issues.
In conclusion, despite the challenges, the high renter density in ZIP 41772 supports a moderate risk assessment for a first-time Section 8 landlord. This balance between risks and opportunities makes the area worth considering for those prepared to manage the inherent challenges effectively.
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.