Location: Madison County, KY | Metro: Madison County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The ZIP code 40404, located within the Madison County, KY metro, presents unique characteristics that distinguish it from other ZIP codes in the area. With a Fair Market Rent (FMR) of $880 for fiscal year 2026, it aligns closely with the broader county's average. However, the lack of specific market rent and home value data for 40404 suggests that it might be less established or have fewer housing units compared to other ZIP codes in the region.
A standout feature of 40404 is its 100.0% renter share, indicating that all households in this ZIP code rent their homes. This is significantly higher than the typical ZIP code in Madison County, which likely has a mix of renters and homeowners. The absence of market rent and home value data could imply that there is limited ownership activity in this area, possibly due to a concentration of Section 8 housing or rental properties catering to low-income tenants.
In the context of the Madison County, KY metro, 40404 appears to be a niche market rather than a broad value pocket or premium sub-market. The high renter share combined with an FMR but no market rent or home value data suggests that it is primarily a rental market, possibly focused on affordable housing solutions. This makes it a particularly interesting area for landlords and small-portfolio investors who are looking to cater to the needs of low-income tenants.
The reliance on Section 8 subsidies in 40404 could indicate a stable tenant base for landlords willing to accept government assistance. It is important for investors to understand the implications of operating in such a market, including the potential for steady but lower-than-average rental income. While this ZIP code may not offer the highest returns, it can provide a reliable source of cash flow for those interested in long-term, low-risk investments.
To better position 40404 within the broader Madison County, KY market, further analysis would require comparing its FMR to the actual market rents of similar ZIP codes. The complete reliance on rentals also implies that property values might be lower than in ZIP codes with a significant homeowner population, making it a potentially attractive option for investors seeking to maximize their rental portfolio within the constraints of affordable housing.
Data Sources: FMR data from HUD (2027). 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.