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 | $890 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $271,819 | 0.47% | F |
| 3BR | $1,760 | $372,288 | 0.47% | F |
| 4BR | $1,910 | $521,712 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 40379, Stamping Ground, KY, reveals interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $1130 annually, while the market rent based on Census ACS data stands at $947.
To calculate the implied gross yield, we use the median home value of $357,413 as our investment basis. For the FMR scenario, the annualized rent of $1130 translates to an implied gross yield of approximately 0.31%. This calculation is derived from dividing the annual rent by the median home value: ($1130 / $357,413) * 100 = 0.31%. In contrast, using the market rent of $947 results in a lower implied gross yield of about 0.26%, calculated similarly: ($947 / $357,413) * 100 = 0.26%.
Given the low renter density of 15.6%, it is more realistic to consider the market rent scenario rather than the FMR scenario. The FMR represents the maximum amount that a landlord can charge for a rental unit under the Section 8 program, but the actual rents collected might be closer to the market rate. The N/A-day Days on Market (DOM) indicates incomplete data, which could suggest either a very tight or very loose rental market. However, the low renter density implies that the majority of residents in Stamping Ground, KY, prefer homeownership over renting, making it challenging to secure long-term tenants at the higher FMR rate.
Therefore, for practical purposes, landlords and small-portfolio investors should focus on the implied gross yield of 0.26% derived from the market rent. This figure provides a clearer picture of the financial realities they are likely to encounter when managing properties in this ZIP code under the Section 8 program.
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.