Location: Washington County, KY | Metro: Nelson County, KY HUD Metro FMR Area
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 | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $252,186 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 40037 presents a dynamic rental market, with the Fair Market Rent (FMR) set at $870 for the fiscal year 2026. This figure, established by HUD, reflects the equilibrium point where 40% of the area's moderate-income households can afford the median rent without spending more than 30% of their income on housing costs. The current market rent, reported at $714 according to the Census American Community Survey (ACS), suggests that rents are below the FMR, indicating potential upward pressure on rental prices as the market adjusts.
The median home value in ZIP 40037 stands at $250,107, which provides a benchmark for homeownership but also implies that a significant portion of residents may find it challenging to purchase homes, thereby relying on rentals. With a 9.3% renter share, it becomes evident that while the majority of residents own their homes, the relatively high percentage of renters signals ongoing housing pressure. This pressure is likely to persist due to the financial constraints faced by many potential homeowners, leading to a sustained demand for rental properties.
The lack of data on price-cut share and days on market (DOM) prevents a precise assessment of whether supply currently outpaces demand or vice versa. However, given the gap between the FMR and the current market rent, there is an indication that demand could be driving rents towards the higher FMR levels. Landlords and small-portfolio investors should remain vigilant to market trends, as the discrepancy between these two figures suggests that rents may rise as the market seeks balance.
In summary, ZIP 40037 operates under a rental market influenced by both affordability concerns and the push towards achieving the FMR. The presence of a notable renter population amidst a backdrop of rising rental prices and constrained homeownership opportunities underscores the importance of rental properties in meeting housing needs. Investors should consider these factors when evaluating the potential returns and stability of their investments in this ZIP code.
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.