Location: Lincoln County, KY | Metro: Casey 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 | $840 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $144,988 | 0.66% | D |
| 3BR | $1,130 | $216,716 | 0.52% | F |
| 4BR | $1,350 | $286,530 | 0.47% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $970 for the fiscal year 2026 in Hustonville, KY (ZIP 40437), landlords can anticipate a stable rental income environment. The Census American Community Survey indicates a market rent of $684, suggesting that there is a significant gap between what the government deems fair and the current market rates. This discrepancy presents an opportunity for landlords to either increase their rents or participate in the Section 8 program to capture higher rents. The median home value in the area is $180,809, indicating a moderate housing market where property appreciation could be a factor in long-term investment strategies. However, only 10.8% of the population are renters, which might limit the potential pool of tenants. Despite this, the median income of $53,775 suggests that many residents have the financial capacity to afford higher rents, especially if they qualify for assistance through programs like Section 8.
The lack of available data on days on market (DOM) and the 0.1% price-cut share indicate a relatively steady market without significant fluctuations in pricing or extended periods of vacancy. These factors combined with the modest renter share point towards a low-risk environment for landlords and small-portfolio investors. Participation in the Section 8 program could help mitigate any risks associated with a smaller rental market while ensuring a consistent stream of income at the FMR rate.
Given these figures, the verdict for Section 8 participation in ZIP 40437 is positive. Landlords can leverage the government-set FMR to secure reliable tenants and maintain a steady cash flow, all while benefiting from a moderate risk profile.
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.