Location: Washington County, KY | Metro: Washington 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 | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,870 | $262,501 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 40040 is built around the significant disparity between the Fair Market Rent (FMR) set at $1,370 for the fiscal year 2026 and the actual market rent of $664 as reported by the Census Bureau's American Community Survey. This gap stands at $706, which represents a 106.3% premium for landlords willing to accept Section 8 vouchers.
The substantial difference makes this area a prime yield play for landlords. By accepting voucher tenants, landlords can secure rental income that far exceeds the local market rate. This is particularly attractive given that only 12.3% of the population are renters, indicating a relatively low supply of rental units compared to the demand for affordable housing options.
The median home value in the area is $261,650, which suggests a middle-class neighborhood where homeownership is common. The lack of reported median income data further underscores the potential for rental properties to fill a niche market, especially for those who qualify for the Section 8 program but might struggle to find suitable housing at market rates.
In conclusion, the premium associated with Section 8 vouchers in ZIP 40040 makes it an advantageous strategy for landlords looking to maximize their rental yields. The gap between FMR and market rent provides a compelling reason to consider participating in the voucher program, as it allows landlords to charge well above the local average without the risk of vacancy typically associated with higher rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.