Location: Mercer County, KY | Metro: Anderson 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 | $680 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $224,460 | 0.42% | F |
| 3BR | $1,250 | $310,900 | 0.4% | F |
U.S. Census Bureau data (2024)
ZIP 40372, located in Salvisa, KY, is a small community with a total population of 2,090 residents. Only 16.5% of the residents are renters, indicating a primarily owner-occupied area. The median household income stands at $74,205, which suggests a middle-class neighborhood where residents have stable financial footing. Median home values in the area are set at $292,275, reflecting a modest cost of living relative to other parts of Kentucky.
The rent economics in ZIP 40372 present an interesting opportunity for real estate investors. According to the Fair Market Rent (FMR) for the metro area in fiscal year 2026, the benchmark is set at $900. However, the current market rent, as reported by the Census Bureau's American Community Survey (ACS), is $866. This discrepancy between the FMR and market rent could be leveraged by savvy investors to attract tenants who qualify for Section 8 housing vouchers.
Given these conditions, ZIP 40372 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the relatively low percentage of renters and the stable income levels of the residents mean that there is a good chance of finding qualified tenants who can consistently pay their rent through the Section 8 program. On the other hand, value-add buyers can focus on improving rental properties to command closer to the FMR, thereby increasing their cash flow while still benefiting from the guaranteed payment structure of the Section 8 program.
In conclusion, the economic landscape of ZIP 40372 offers a balanced opportunity for different types of real estate investors. Whether you prefer a passive approach or an active role in property management, the data points to a favorable environment for Section 8 investments.
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.