Location: Madison County, KY | Metro: Garrard 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 | $650 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $284,404 | 0.44% | F |
U.S. Census Bureau data (2024)
19.1% of residents in ZIP 40461 are renters, indicating a significant portion of the population relies on rental housing. This statistic is crucial for landlords and small-portfolio investors looking to understand the local market dynamics. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, which serves as a benchmark for rental pricing. However, the actual market rent, based on Census ACS data, stands at $786, suggesting that landlords can potentially adjust their rents closer to the FMR without alienating tenants.
$292,170 is the median home value in ZIP 40461, reflecting the overall property values in the area. For investors considering purchasing properties, this figure provides insight into the typical cost of residential real estate. Additionally, the median income of $71,212 gives a clear picture of the economic standing of the residents, helping investors gauge the affordability of rental rates for potential tenants.
Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the disparity between the FMR and market rent indicates a stable but slightly undervalued rental market. Landlords should be cautious about overpricing their units, as the median income suggests that tenants may have limited budgets.
In conclusion, the rental market in ZIP 40461 offers opportunities for landlords and small-portfolio investors to capitalize on the gap between the FMR and current market rents. With a median home value of $292,170 and a median income of $71,212, there is potential for modest increases in rental rates. The Section 8 program, with its fixed payment standards, remains a viable option for landlords willing to accept the terms. Verdict: Acceptable for Section 8 participation, given the stable market conditions and reasonable income levels.
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.