Section 8 Fair Market Rent (FMR) for ZIP 40359 - 2027

Location: Owen County, KY | Metro: Owen County, KY

Investment Score for ZIP 40359

F
Monthly Rent (2BR)
$910
Median Price (2BR)
$208,406
1% Rule
0.44%
Annual Yield
5.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$650
1 Bedroom$690
2 Bedrooms$910
3 Bedrooms$1,240
4 Bedrooms$1,270
5 Bedrooms$1,473
6 Bedrooms$1,650
7 Bedrooms$1,782
8 Bedrooms$1,871

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $910 $208,406 0.44% F
3BR $1,240 $260,552 0.48% F
4BR $1,270 $327,880 0.39% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,989
Median Household Income
$62,542
Housing Units
3,240
Renter Percentage
12.7%
Occupancy Rate
81.1%
Renter Occupied
333

The ZIP code 40359 in Owen County, Kentucky, stands out due to its relatively low number of renters compared to the national average. With a total population of 6,989, only 12.7% of residents are renters, indicating a strong preference for homeownership in the area. The median household income is $62,542, which is modest but reflective of the local economy. Median home values in the area are notably higher at $190,289, suggesting that while homeownership is favored, it comes with a significant investment.

Moving into the specifics of Section 8 housing economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $870, whereas the current market rent, according to the Census ACS, is $745. This discrepancy between the FMR and market rates presents an opportunity for landlords who can leverage the higher FMR to secure rental incomes above the local market rate. For small-portfolio investors, this could be particularly attractive as it offers a chance to mitigate risks associated with lower market rents.

The data signature for ZIP 40359 reads as stable. The low percentage of renters suggests a community where long-term homeownership is common, which typically correlates with a stable property market. Additionally, the median income and home values indicate a steady economic condition without signs of rapid change or volatility. Landlords and investors should take note of these factors when considering investments in this area, as they point towards a reliable and predictable market environment.

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.