Location: McCreary County, KY | Metro: McCreary County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 42631 highlights several critical factors that could impact a landlord's decision to participate in the Section 8 program. First, tenant turnover poses a significant challenge. The Fair Market Rent (FMR) for the area, set at $960 for FY 2026, may not align with the local market rent, which is currently unavailable. This discrepancy can lead to higher turnover rates as tenants might find better deals elsewhere.
Vacancy exposure is another concern. With no data available on the Days on Market (DOM), it's difficult to predict how long properties might remain vacant. In an ideal scenario, lower DOM values indicate quicker leasing periods, but without this information, there's a risk of prolonged vacancies that could affect cash flow.
The deferred maintenance exposure is also uncertain due to the lack of data on typical home values and median incomes. Without these figures, it's challenging to assess the financial health of potential tenants and their ability to maintain properties. However, it's crucial to note that properties in areas with lower incomes might require more frequent maintenance, increasing operational costs.
Despite these uncertainties, the ZIP code has a 0.0% renter share, which typically suggests a high concentration of renters. High renter density usually correlates with increased demand for housing vouchers, indicating that there could be a robust pool of Section 8 eligible tenants looking for homes. This factor can mitigate some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.