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 | $830 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $191,387 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 40442 reveals a unique balance between yield and stability that does not fully align with either high-yield/low-stability flip-style markets or steady-cashflow zones. Specifically, the Federal Market Rent (FMR) for the area is set at $900 for the fiscal year 2026, which is significantly lower than the typical market rent, suggesting a potential opportunity for higher-than-average rental yields if market rents can be charged. However, the median home value stands at $156,832, indicating a relatively affordable housing market.
On the stability axis, the data shows that only 13.7% of residents are renters, which is a low percentage compared to many metropolitan areas. This suggests that there might be a smaller demand for rental properties, potentially leading to less stable cash flows. The lack of available data on days-on-market (DOM) and income levels complicates the full assessment of stability but points towards a conservative approach being necessary when investing in this ZIP code.
To summarize, ZIP 40442 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The low percentage of renters and the absence of other key indicators such as DOM and income levels suggest that while there is potential for good yields due to the disparity between FMR and possible market rents, the overall stability of the rental market is questionable. Landlords and small-portfolio investors should carefully consider the local economic conditions and the potential for occupancy challenges before making investment decisions.
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.