Location: Rowan County, KY | Metro: Bath County, KY
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 | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $142,331 | 0.7% | D |
| 3BR | $1,240 | $201,681 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 40371, encompassing Salt Lick, KY, and parts of Bath and Rowan Counties, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $950 per month for fiscal year 2026, which is significantly higher than the current market rent of $753 as reported by the Census Bureau's American Community Survey (ACS).
This gap between the HUD FMR and the actual market rent means that voucher tenants will generally cashflow positively at the FMR rate. Landlords can expect a comfortable margin when renting to tenants with Section 8 vouchers, as the voucher amount exceeds the typical market rent. This positive cashflow scenario is particularly beneficial for investors looking to maximize their monthly returns.
To further contextualize this opportunity, consider the median home value in the area, which stands at $156,749. Using the HUD FMR of $950, we can calculate a rent-to-price ratio of approximately 0.61%. This ratio suggests that rental income could be a significant portion of the total property value, making it an attractive proposition for those interested in generating passive income through rentals.
Note that the median days on market (DOM) and the percentage of homes that experience price cuts are not applicable (N/A) in this analysis. However, the strong rent-to-price ratio indicates that the rental market is robust and likely to provide steady cashflow without the need for frequent price adjustments or extended vacancy periods.
The strongest investor angle in ZIP 40371 is undoubtedly cashflow. Given the discrepancy between the HUD FMR and the market rent, investors can secure a reliable and positive cashflow position by renting to voucher holders, making this a prime opportunity for those focused on maximizing monthly returns.
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.