Location: Breckinridge County, KY | Metro: Elizabethtown, 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $262,061 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 40115 reveals interesting insights for landlords and small-portfolio investors. The median home value in this area is $198,951. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1010 per month (for fiscal year 2024), we can calculate the implied gross yield.
To determine the gross yield, we first need to calculate the annual rental income. For a 2-bedroom unit, the annual rental income would be $1010 multiplied by 12 months, which equals $12,120. Given the median home value of $198,951, the implied gross yield is calculated as follows:
$12,120 / $198,951 = 0.0609 or 6.09%.
This calculation assumes that the property is rented out at the FMR rate. However, since the market rent is listed as N/A, it's important to consider how this affects the analysis. Without specific market rent figures, we cannot provide an accurate comparison to the FMR scenario. Nonetheless, it's worth noting that the FMR represents a government-set standard, often lower than market rates, especially in areas where demand exceeds supply.
The renter density in ZIP 40115 is 7.0%, indicating a relatively low proportion of renters compared to homeowners. This statistic suggests that the market for rental properties, including those under Section 8, might be less competitive, potentially allowing landlords to charge closer to the FMR rather than significantly above it.
Given the N/A-day Days on Market (DOM) figure, it's challenging to predict how quickly a property could be leased. However, a lower DOM typically indicates higher demand, which could support higher rents. In contrast, a higher DOM might suggest a softer rental market, making it harder to command premiums over the FMR.
In conclusion, based on the available data, the FMR scenario implies a gross yield of 6.09%. While market rent figures are not provided, the low renter density and uncertain DOM suggest that achieving yields significantly above this percentage may be difficult without substantial evidence of higher local rental rates.
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.