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 income in ZIP code 41838 stands at $42,962, indicating a modest economic environment. Given the absence of specific market rate data, it is essential to rely on the Fair Market Rent (FMR) standards set by the government for understanding housing affordability. The FMR for this area, as of metro fiscal year 2026, is $870. This figure represents the maximum amount that a household receiving a Section 8 voucher can pay towards their rent.
To put this into perspective, let’s consider a household earning the median income. Assuming a common guideline where housing costs should not exceed 30% of gross income, a household would have approximately $1,074 available per month for rent. This is significantly higher than the FMR of $870, suggesting that there is a notable gap between what households can afford and what the government subsidizes through vouchers.
In ZIP 41838, 33.6% of the 701 residents are renters, creating a competitive landscape for landlords. However, the affordability gap means that many renters may lean towards using Section 8 vouchers to secure housing. For landlords, this implies that while they might attract tenants willing to pay up to $1,074, the reality of voucher payments at $870 could affect their decision-making process regarding rental strategy.
Takeaway: Landlords in ZIP 41838 must weigh the benefits of accepting Section 8 vouchers against the potential for higher rents from cash-paying tenants. While the voucher payment of $870 is below the affordability threshold for median-income households, it remains a viable option for securing tenants. Landlords should consider the stability and reliability of voucher payments versus the higher risk and administrative burden of renting to cash-paying tenants who might be less financially stable despite having a higher income. A strategic approach might involve offering units at both ends of the spectrum to cater to the diverse needs of the local rental market.
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.