Location: Letcher County, KY | Metro: Letcher County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The median home value in ZIP code 41812 is approximately $77,600. This figure is derived from recent data and provides a baseline for understanding the local real estate market.
The Fair Market Rent (FMR) for a two-bedroom unit in ZIP 41812 for fiscal year 2026 is set at $890 per month. This is the amount that Section 8 vouchers can cover for eligible tenants. However, the exact market rent for comparable units in the area is not readily available, indicating a potential gap in current data.
To calculate the implied gross yield, we first consider the scenario where the market rent matches the FMR. With an annualized rent of $890 multiplied by 12 months, the total annual rent would be $10,680. Dividing this by the median home value of $77,600 yields an implied gross yield of approximately 13.76%. This calculation assumes that the entire property is rented out at the FMR rate.
In the absence of specific market rent data, it is difficult to provide a precise comparison. However, based on historical trends and the limited data available, it is reasonable to assume that market rents could be higher than the FMR. If market rents were to be around $1,000 per month, the annualized rent would be $12,000, leading to an implied gross yield of approximately 15.46%. This scenario would represent a more optimistic outlook for potential rental income.
The 30.3% renter density suggests that there is a significant portion of the population that relies on rental housing. While this does not directly impact the gross yield, it does indicate a steady demand for rental properties. The lack of specific Days on Market (DOM) data makes it challenging to assess how quickly properties might be leased, but the relatively stable renter base supports the likelihood of consistent occupancy.
Given the limited market rent data, the FMR-based gross yield of 13.76% is a more realistic starting point for analysis. Investors should use this figure as a benchmark and adjust their calculations based on actual market conditions and their own experience with rental properties in the area.
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.