Location: Washington County, KY | Metro: Shelby County, 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 | $860 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $201,407 | 0.56% | F |
| 3BR | $1,380 | $263,921 | 0.52% | F |
| 4BR | $1,570 | $360,394 | 0.44% | F |
| 5BR | $1,821 | $474,319 | 0.38% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 40342, encompassing Lawrenceburg, KY, and parts of Anderson and Washington Counties, reveals a favorable environment for those seeking to leverage HUD Fair Market Rent (FMR) rates. The HUD FMR for this area in fiscal year 2024 is set at $1110. In contrast, the market rent, based on Census American Community Survey (ACS) data, stands at $926. This indicates that properties rented through the Section 8 program can achieve positive cash flow at the FMR rate, given the lower market rent.
To further contextualize the rental market, consider the median home value in the area, which is $256,278. The rent-to-price ratio, calculated using the HUD FMR, is approximately 0.43%. This suggests that rental income is relatively high compared to property values, making rental properties attractive investments. However, it's important to note that this ratio is based on the higher FMR rate rather than the actual market rent.
The median days on market (DOM) for homes in this area is 42 days, indicating a reasonably quick turnover rate for home sales. Additionally, the price-cut share is a mere 0.2%, suggesting that sellers are not having to significantly reduce their asking prices to attract buyers. These factors imply a stable housing market where both buying and renting remain viable options for residents.
In terms of cash flow, voucher tenants at the FMR rate of $1110 provide a substantial margin above the current market rent of $926. This means that landlords can expect to see positive cash flow even without premium units. Stability is also a strong factor, given the low price-cut share and quick DOM, which indicate a consistent demand for housing. While appreciation is possible, the strongest angle for investors in ZIP 40342 remains the robust cash flow potential, particularly when leveraging Section 8 vouchers at the HUD FMR rate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.