Location: Letcher County, KY | Metro: Letcher County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A skeptical investor might question if the FMR of $870 will sufficiently cover the mortgage on a property in ZIP 41819. According to recent real estate data, the median home value in this area is approximately $63,000. Given that the median home values are significantly lower than the national average, it suggests that mortgage payments would likely be manageable within the $870 FMR range. However, precise mortgage rates are not provided in the data, so a more detailed analysis would be necessary to confirm this.
The concern about renter demand at 8.8% might arise due to the relatively low percentage of renters in the area. This figure does not directly indicate the strength of rental demand; rather, it reflects the proportion of households that rent. To assess whether there is sufficient demand, we must consider other factors such as population growth, job opportunities, and the availability of affordable housing. The low median home value could imply a high demand for rental properties among those who cannot afford to purchase homes, potentially offsetting the low percentage of renters.
Voucher usage is another point of contention. While the data does not specify the rate at which vouchers are used in ZIP 41819, it is important to note that voucher holders often struggle to find landlords willing to accept them. The challenge here lies in whether the voucher amounts will keep pace with the local market rents. Given the low median home value and FMR, it is plausible that voucher amounts could remain competitive with market rents. However, without specific data on voucher usage and amounts, it is difficult to provide a definitive answer.
To summarize, while the FMR of $870 should theoretically cover mortgage payments on a property valued around $63,000, a more detailed financial analysis is required. Renter demand at 8.8% might seem low, but the overall context of affordability and housing needs suggests potential demand. Lastly, the effectiveness of vouchers in keeping pace with market rents remains uncertain without additional data.
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.