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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,330 | $245,166 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP 40140, located in Breckinridge County, KY, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for a one-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1010. Given that the market rent data is currently unavailable, we rely on the FMR as a baseline for rental income expectations.
The median home value in ZIP 40140 is $192,704. This figure suggests that property acquisition costs are relatively low compared to other metropolitan areas. However, the primary focus here should be on the guaranteed rental income provided by the Section 8 program, which ensures steady cash flow regardless of market fluctuations.
With a renter share of 6.3%, the majority of residents in this area own their homes rather than renting. This characteristic supports the idea of using this ZIP code as a cash-flow anchor because it indicates a stable community where tenants are likely to stay longer, reducing turnover rates and associated costs. Additionally, the median income of $81,708 is substantial enough to ensure that tenants can manage their portion of the rent without significant risk of default.
A cash-flow anchor is crucial for any investment portfolio, providing consistent income that can offset potential losses or underperformance in other investments. In the case of ZIP 40140, the guaranteed income from the Section 8 program, combined with the lower acquisition cost of properties, makes it an ideal choice for securing reliable cash flow.
While appreciation plays and diversifiers have their place in a well-rounded investment strategy, the specific data available for ZIP 40140 points most strongly towards its utility as a cash-flow anchor. The lack of recent price-cut share and days-on-market (DOM) data means there's insufficient evidence to classify it as an appreciation play. Similarly, while the 6.3% renter share does offer some diversification benefits, the primary strength lies in the stability and predictability of the rental income stream.
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.