Location: Washington County, KY | Metro: Anderson 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 | $800 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $219,780 | 0.51% | F |
| 3BR | $1,550 | $277,852 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 40078, located in Willisburg, KY, are significant. First, consider the issue of tenant turnover. The market rent for the area is $1,042, which is notably lower than the Fair Market Rent (FMR) of $1,170 for the fiscal year 2026 in the metropolitan area. This discrepancy can lead to frequent tenant changes as individuals may seek properties that better match their budget or find units that offer the higher FMR.
Vacancy exposure is another critical concern. The days on market (DOM) for vacant properties is currently not available, indicating a lack of recent data on how quickly rental properties fill up. Without this information, it's challenging to predict the length of time a property might remain vacant, potentially leading to financial strain for landlords who depend on steady rental income.
The deferred maintenance exposure is also substantial. With an average home value of $246,455 and a median household income of $54,435, many residents may struggle to afford necessary repairs and upgrades. This economic pressure can translate into higher maintenance costs for landlords, especially when dealing with tenants who have limited funds for upkeep.
Despite these challenges, there are mitigating factors that make the situation less dire. The renter share in the area stands at 18.0%, which is relatively high. High renter density typically correlates with increased demand for housing vouchers, such as Section 8. This means that even if some tenants leave due to the rent disparity, there is likely a steady stream of new voucher holders ready to take their place, reducing the overall risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.