Location: Leslie County, KY | Metro: Leslie County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
The ZIP code 41777 presents several challenges for potential Section 8 landlords. Firstly, the tenant turnover rate can be unpredictable due to the significant gap between the market rent and the Fair Market Rent (FMR) set at $870 for fiscal year 2026 in the metro area. This discrepancy can lead to financial instability if the market rent exceeds the FMR, forcing landlords to accept lower rental incomes.
Vacancy exposure is another concern. With a typical home value of $74,164 and a median income of $29,976, maintaining occupancy rates can be difficult. The days on market (DOM) figure is not available, which makes it hard to gauge how quickly properties might fill up, especially during periods of higher vacancy rates. Landlords must be prepared for extended vacancy periods that can impact cash flow.
Deferred maintenance is a significant risk. The median income suggests that residents might struggle to afford substantial repairs or maintenance, which could fall back on the landlord. Ensuring that properties meet the necessary standards for Section 8 tenancy requires regular upkeep and capital expenditure, which can be financially demanding without a steady stream of rental income.
However, these risks are offset by the high renter share of 16.9%. A larger proportion of renters typically indicates a higher demand for housing vouchers, meaning that there will likely be a pool of tenants ready to occupy the property once it becomes available. This demand can stabilize occupancy rates and provide a consistent income source, despite the initial risks.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 41777 is moderate. While there are notable risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a promising counterbalance through increased voucher demand and occupancy stability.
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.