Location: Perry 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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,080 | $94,874 | 1.14% | B |
U.S. Census Bureau data (2024)
The analysis of ZIP code 41773 reveals a market that offers a balance between yield and stability, making it an attractive option for landlords and small-portfolio investors seeking a middle ground.
On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, while the actual market rent stands at $487. This suggests a potential upside for investors who can secure properties below the FMR, thereby achieving higher rental yields. The median home value of $77,307 further supports this, indicating that property acquisition costs are relatively low compared to the rental income potential. However, the discrepancy between FMR and market rent highlights the need for strategic pricing to maximize returns without alienating tenants.
Moving to the stability axis, the ZIP code has a substantial 34.7% of residents as renters, which signals a consistent demand for rental properties. While the average days on market (DOM) is not available, the median household income of $50,089 provides insight into the financial health of the tenant pool, suggesting they are likely to be stable and able to meet their rent obligations regularly.
To classify this market, we must consider both yield and stability. The gap between the FMR and market rent indicates a potential for higher yields if investors can acquire properties at or near the median home value. However, the lower market rent also points to a less lucrative scenario than what the FMR might suggest. Stability is moderately high due to the significant percentage of renters and the income level that supports regular rent payments. But the lack of DOM data introduces some uncertainty regarding the speed at which properties can be rented out.
In conclusion, ZIP code 41773 leans towards being a steady-cashflow zone with moderate yield potential. Investors should focus on acquiring properties below the median home value to capitalize on the higher FMR, while the strong presence of renters and decent income levels ensure a relatively stable cash flow. This makes it suitable for those looking for a balance rather than a high-risk, high-reward strategy.
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.