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 | $1,050 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $158,039 | 0.86% | C |
| 3BR | $1,870 | $260,079 | 0.72% | D |
| 4BR | $2,140 | $336,600 | 0.64% | D |
U.S. Census Bureau data (2024)
The Vine Grove area, represented by ZIP code 40175 in Kentucky, presents an interesting landscape for both tenants and landlords alike. The median household income stands at $77,509, which is a solid economic foundation for many families. However, when it comes to housing costs, the situation becomes more nuanced. The market rate for rent, according to the Census ACS, is $1,198 per month. This figure represents a significant portion of the average household’s budget.
To put this into perspective, let's consider the voucher payment standard set at $1200 for the Fair Market Rent (FMR) in Vine Grove for fiscal year 2024. While this is slightly above the current market rate, it still leaves a noticeable gap between what the typical household earns and what they would need to pay for housing considered affordable by government standards.
In Vine Grove, 24.1% of the population are renters, and the total population is 15,718. This means there are approximately 3,790 households renting in the area. Given the median income and the market rate for rent, a household would spend around 15.5% of their annual income on rent alone, assuming they pay the market rate. When considering the FMR of $1200, this expenditure increases to about 16.1% of the annual income. These percentages highlight the tight margins many renters face, especially those relying solely on their income without additional financial support.
The affordability gap in Vine Grove has implications for landlord competition. Landlords who accept Section 8 vouchers may find themselves with a more stable tenant base, as voucher recipients have guaranteed rental assistance. However, those who opt for cash-paying tenants might attract a different demographic—households with higher incomes or those willing to pay more for specific amenities or location advantages.
Takeaway: For landlords in Vine Grove, understanding the local affordability dynamics is crucial. Accepting vouchers can ensure a steady stream of rental income but also requires navigating the bureaucratic processes associated with the program. On the other hand, focusing on cash-paying tenants could mean higher rents but also necessitates creating value that justifies the cost above the median market rate. In either case, transparency about costs and benefits will be key to attracting and retaining tenants.
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.