Location: Mason County, KY | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area
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 | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $151,366 | 0.67% | D |
| 3BR | $1,340 | $187,913 | 0.71% | D |
U.S. Census Bureau data (2024)
ZIP code 41002, located in Augusta, KY, resides within the broader Mason County, KY metro area. Its Federal Market Rent (FMR) for fiscal year 2024 is set at $990, which stands notably higher than the market rent of $732. This indicates that the government's subsidy rate is above what the local market demands, potentially making it an attractive location for Section 8 tenants.
The median home value in ZIP 41002 is $194,250, a figure that is likely below the average for the entire county. Coupled with a renter share of 31.2%, this suggests a significant portion of the population relies on rental housing. Typically, a high renter share with lower-than-average home values can signal a strong Section 8 presence, as it often attracts a larger number of subsidized renters.
To determine if ZIP 41002 is a value pocket, mid-tier neighborhood, or a premium sub-market within its metro, we must consider the relationship between FMR and market rents. In this case, the FMR exceeds the market rent, indicating that landlords could receive more than the typical market rate when renting to Section 8 tenants. This makes ZIP 41002 a value pocket for landlords who are willing to participate in the Section 8 program, as they can potentially profit from the difference between the government subsidy and the actual market demand.
The higher FMR also implies that the government recognizes the cost of living in the area as being somewhat elevated compared to other ZIP codes with similar characteristics. However, the actual market rent remains lower, suggesting that there might be ample opportunities for landlords to negotiate slightly above the market rent but still below the FMR, thus maximizing their income while remaining competitive.
In summary, ZIP 41002 presents itself as a value pocket within the Mason County, KY metro, due to its above-market FMR and substantial renter share. Landlords should take advantage of the higher subsidy rates and the potential for attracting Section 8 tenants, who are likely to appreciate the affordability of the area.
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.