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)
The median home value in ZIP 41832, located in Letcher, Kentucky, is $84,600. For landlords and small-portfolio investors interested in the Section 8 cap-rate picture, we can derive some insights based on the available data.
The annualized Fair Market Rent (FMR) for a two-bedroom unit in ZIP 41832 for FY 2026 is $870. However, since the market rent is not available, we will focus on the FMR scenario. Given the median home value of $84,600, the implied gross yield for a two-bedroom unit under the Section 8 program can be calculated. This yields an approximate gross yield of 1.03%.
This calculation assumes that the home value accurately reflects the potential rental property's value and that the Section 8 payment standard covers the entire rent. However, it is important to note that the actual gross yield could be lower due to factors such as maintenance costs, vacancies, and other operational expenses.
The 47.9% renter density in ZIP 41832 suggests a moderate demand for rental properties, but the lack of data on the typical days on market (DOM) makes it difficult to gauge how quickly properties might be leased. Nonetheless, the low median home value indicates that the area is economically challenged, which aligns with the relatively low FMR of $870.
In conclusion, while the implied gross yield based on the FMR is 1.03%, the actual net operating income (NOI) will depend on various factors. Investors should consider these specifics when evaluating the feasibility of investing in ZIP 41832 under the Section 8 program.
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.