Location: Letcher County, KY | Metro: Letcher County, KY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $76,580 | 1.19% | B |
| 3BR | $1,090 | $121,622 | 0.9% | C |
| 4BR | $1,330 | $156,140 | 0.85% | C |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 41858, located in Whitesburg, KY, presents several challenges that must be carefully considered by first-time Section 8 landlords. One significant issue is tenant turnover, driven by the disparity between the market rent of $654 and the Federal Market Rent (FMR) of $870 for the fiscal year 2026 in the metro area. This gap can lead to frequent changes in occupancy as tenants seek more affordable housing options.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant, increasing financial risk. Additionally, the typical home value of $101,817 and median income of $45,933 suggest a higher likelihood of deferred maintenance issues, as lower-income residents may struggle to afford necessary repairs and upkeep.
However, these risks are somewhat mitigated by the high renter share of 25.7%. In areas with a large number of renters, there tends to be a greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The presence of numerous potential voucher holders can ensure that properties are occupied even when market conditions are challenging.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 41858, Whitesburg, KY, is moderate. While there are significant challenges related to tenant turnover and deferred maintenance, the high renter share offers a buffer against vacancy exposure and ensures a stable tenant pool.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.