Location: Owen 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 | $1,050 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $268,249 | 0.56% | F |
| 3BR | $2,070 | $374,018 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 40370, located in Sadieville, KY within the Owen County metro, presents an interesting profile when compared against typical ZIP codes in the same county. The Fair Market Rent (FMR) for ZIP 40370 stands at $1070 for fiscal year 2024, while the market rent is $1,286. This indicates that the rental market in 40370 is slightly above the FMR but remains relatively affordable within the context of the Owen County metro.
Average home values in 40370 amount to $329,913, which is a key figure to consider when evaluating the real estate landscape. Renter share in this ZIP is 12.0%, a statistic that can be used to gauge the potential demand for rental properties. These figures suggest that 40370 is positioned as a mid-tier neighborhood within its metro, balancing between affordability and property values that are reflective of the broader market trends in Owen County.
To determine if 40370 represents a value pocket or a premium sub-market, we must look at the relationship between the FMR, market rent, and home values. Given that the FMR is notably lower than the market rent, it implies that there could be opportunities for landlords who are willing to accept government-subsidized rents. However, the home values in 40370 are not significantly lower than what might be expected in a typical Owen County ZIP code, suggesting that it does not qualify as a value pocket where homes are undervalued relative to the rest of the county.
The 12.0% renter share, while not exceptionally high, does indicate a presence of renters in the area. In conjunction with the FMR being below the market rent, this could signal that 40370 is an area where Section 8 housing vouchers are more prevalent, making it potentially attractive for landlords who wish to participate in the subsidized housing program. However, the higher home values imply that the overall real estate market in 40370 is not undervalued, thus it also cannot be classified as a premium sub-market.
In summary, ZIP 40370 appears to be a mid-tier neighborhood within the Owen County metro, offering a balanced scenario for both homeowners and renters. It does not exhibit characteristics of a value pocket or a premium sub-market, but its slightly above-average rental rates coupled with the presence of Section 8 tenants could make it a strategic choice for landlords looking to diversify their investment portfolios.
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.