Location: Pulaski 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $155,855 | 0.61% | D |
| 3BR | $1,130 | $202,354 | 0.56% | F |
| 4BR | $1,370 | $235,121 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for a metro area in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $170,911 in Waynesburg, KY (ZIP 40489).
The answer lies in the specifics of the mortgage. Assuming a typical 30-year fixed-rate mortgage with a 4% interest rate, the monthly payment on a $170,911 home would be approximately $823. This figure is derived from standard mortgage calculations and does indeed fall below the projected FMR of $890, suggesting that rental income could cover the mortgage.
Another concern might be the rental demand in Waynesburg, given that only 21.5% of households are renters. However, this percentage translates into a significant number of potential tenants. With a population of around 4,000, 21.5% equates to roughly 860 renting households. Given the low cost of living and limited housing options, this demand is likely to sustain itself, especially if the property is well-maintained and competitively priced.
The third objection centers around whether HUD vouchers will keep pace with the $780 market rent for a one-bedroom unit in Waynesburg. According to HUD's latest data, the FMR for a one-bedroom unit in Waynesburg for fiscal year 2026 is set at $780. While voucher amounts can vary, they generally align closely with FMRs. Therefore, it is reasonable to expect that vouchers will cover the market rent, ensuring steady tenant income.
However, it's important to note that these projections are based on current data and assumptions. Economic changes, shifts in housing policies, or alterations in the local real estate market could affect these outcomes. It is advisable to continuously monitor local trends and adjust strategies accordingly.
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.