Location: Nicholas County, KY | Metro: Lexington-Fayette, KY MSA
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 | $800 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $168,425 | 0.68% | D |
| 3BR | $1,570 | $249,112 | 0.63% | D |
| 4BR | $1,750 | $361,885 | 0.48% | F |
| 5BR | $2,030 | $415,454 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 40361, Paris, KY, suggests a balanced market with slight indications of seller's pricing power. With a median home value of $249,556, the market reflects a stable housing environment where property values have remained consistent. The fact that only 0.2% of listings have been reduced further supports this stability, implying that sellers are generally achieving their asking prices without significant concessions.
The median days on market (DOM) being listed as 'N/A' indicates that either there is an insufficient number of recent transactions to provide a reliable average, or sales are happening very quickly, leaving little time for properties to linger on the market. This quick turnover can be interpreted as strong demand relative to supply, which bolsters the notion of seller's pricing power. However, it's important to note that this could also be due to a low volume of sales, which might indicate a less active market overall.
On the rental side, the Federal Market Rent (FMR) for ZIP 40361 in fiscal year 2024 is set at $980, while the market rent, as indicated by Zillow's Observed Rental Index (ZORI), stands at $1,253. This discrepancy highlights the potential for rental income to exceed government estimates, offering a favorable return for landlords and small-portfolio investors who can capitalize on this difference.
For long-term investors, the setup in ZIP 40361 signals a modest appreciation thesis. The stable home values and the slight edge in market rents over FMR suggest that, barring any significant economic shifts, property values are likely to appreciate at a rate that matches inflation or slightly above. This makes Paris, KY, a suitable location for those seeking steady growth in their investment portfolios, rather than rapid appreciation.
To summarize, the current median home value, the minimal reduction in listing prices, and the quick turnover on the market side all point towards a robust seller's market. On the rental front, the higher market rates compared to FMR offer a compelling reason for investors to consider the area for generating rental income. Long-term investors can expect modest but reliable appreciation, making ZIP 40361 a solid choice for those looking to build wealth through real estate over the next 12-24 months.
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.