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 analysis for ZIP 41817 reveals a significant gap between the Fair Market Rent (FMR) set at $900 for the metro area in fiscal year 2026 and the current market rent, which remains unspecified. This discrepancy underscores the importance of understanding both the FMR and market dynamics when evaluating investment opportunities.
The FMR is $900, which represents the maximum amount of rent that a landlord can charge a tenant receiving federal housing assistance. However, the lack of specific market rent data suggests that either the market rent is higher or there is insufficient data to provide a precise figure. To illustrate the impact of this gap, let's assume the market rent is significantly above $900, which is common in many areas.
If the market rent were, for example, $1,200, the gap would be $300, or 33.3%, below the market rate. This means landlords who accept Section 8 vouchers in ZIP 41817 will earn less per unit compared to the open market. Given that only 17.6% of residents are renters, and the median home value stands at $62,802 with a median income of $52,417, landlords must weigh the benefits of guaranteed rental income against the lower yields.
The decision to participate in the Section 8 program should consider the broader economic context. A median income of $52,417 implies that many residents might find it challenging to afford market rents, making the Section 8 program a viable option for securing tenants. Landlords should also factor in the stability of rental income and the reduced risk of vacancy.
To summarize, the gap between the FMR and the unspecified market rent highlights the financial trade-offs involved in accepting Section 8 vouchers. While it may result in a lower yield, it ensures a steady stream of tenants and income, which is particularly valuable given the relatively low percentage of renters and median income levels in ZIP 41817.
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.