Section 8 Fair Market Rent (FMR) for ZIP 41859 - 2027
Location: Knott County, KY | Metro: Knott County, KY
FY 2027 Fair Market Rent Rates
| 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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$46,406
When considering whether to invest in ZIP code 41859 for Section 8 properties, follow this decision tree:
- Does FMR $870 (metro FY 2026) cover debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not purchase here. The Federal Market Rent (FMR) must sufficiently cover your mortgage payments and other expenses to ensure profitability.
- Is market rent above, at, or below FMR?
- Above FMR: This indicates that you could potentially earn more than the Section 8 payment limit if renting to non-Section 8 tenants. However, this does not directly affect Section 8 investments unless you plan to switch tenants periodically.
- At FMR: This means that the typical rent aligns with the FMR, making Section 8 properties competitive with the market. It's a neutral position but doesn't discourage investment.
- Below FMR: This suggests that market rents are lower than what Section 8 pays, which could be advantageous as it allows for a wider tenant pool including those who might pay more than the market rate due to Section 8 subsidies.
- Are 16.2% of residents renters and do they have sufficient demand (DOM)?
- Yes, with low DOM: There is strong demand for rental properties in this area. A short DOM (days on market) implies quick turnover and less time spent on vacancy, which is favorable for investors.
- No, with high DOM: The demand for rentals is weak, leading to long periods of vacancy. This can significantly impact cash flow and overall profitability, so it would be wise to reconsider investing here.
- It depends: If the percentage of renters is low but the DOM is reasonable, there may still be potential, though it's riskier. Conversely, a high percentage of renters with a slightly higher DOM might still be viable depending on other factors such as property values and maintenance costs.
The key to success in ZIP 41859 lies in ensuring that the FMR covers your debt service and that the rental market supports a healthy demand for Section 8 properties. If these conditions are met, it can be a strategic location for investment.
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.