Location: Ohio County, KY | Metro: Breckinridge 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 | $670 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $230,460 | 0.39% | F |
| 3BR | $1,240 | $290,001 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Falls of Rough, KY (ZIP 40119) might have several concerns regarding the viability of investing in the area, especially considering it under the lens of Section 8 housing. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $870 (metro FY 2026) cover the mortgage on a $146,257 home?
The FMR of $870 is the benchmark set by HUD for determining payment standards for Section 8 housing in Falls of Rough, KY. To evaluate if this amount can cover the mortgage on a $146,257 home, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4.5%, the monthly mortgage payment for a $146,257 home would be approximately $725, which is less than the FMR. Therefore, the FMR does cover the mortgage, leaving some room for property taxes, insurance, and maintenance costs.
Objection 2: Is there enough renter demand at 1.6%?
The 1.6% figure likely represents the percentage of households participating in the Section 8 program relative to the total number of households in Falls of Rough, KY. This low percentage suggests that the demand for Section 8 rental units might be limited. However, it's important to note that the percentage alone doesn't give a complete picture of the actual number of potential tenants. A small percentage of a large population can still represent a significant number of renters. Additionally, the local job market, unemployment rates, and other socio-economic factors can influence the demand for affordable housing. The data does not provide comprehensive information on these factors, so further research is necessary to fully assess the demand.
Objection 3: Will vouchers keep pace with N/A market rents?
The lack of data on market rents makes it difficult to determine if voucher payments will keep up with the cost of living in Falls of Rough, KY. Typically, HUD adjusts the FMR annually based on changes in the housing market, but without specific information on how the local rental market has performed, it's challenging to predict future trends. It's crucial for investors to monitor local rental price increases and adjust their expectations accordingly. If the local rental market experiences rapid growth, the FMR may not fully cover the costs, leading to potential financial strain on the landlord.
In summary, while the FMR of $870 does cover the mortgage on a $146,257 home, the limited demand indicated by the 1.6% participation rate and the absence of data on market rents present significant challenges. Investors should proceed with caution and conduct thorough due diligence before making any investment decisions in Falls of Rough, KY.
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.