Location: Carroll County, KY | Metro: Carroll 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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $136,314 | 0.78% | D |
| 3BR | $1,270 | $201,452 | 0.63% | D |
| 4BR | $1,410 | $256,689 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 41008 in Kentucky might have several concerns regarding the feasibility of investing in rental properties. Let's address these concerns directly using available data.
Objection 1: Will FMR $970 (metro FY 2026) cover the mortgage on a $189,873 home?
The Fair Market Rent (FMR) for ZIP 41008 is projected to be $970 per month in fiscal year 2026. To determine if this will cover the mortgage on an average-priced home, we need to consider the typical interest rates and loan terms. Assuming a fixed-rate mortgage at a conservative rate of 4.5% over 30 years, the monthly payment on a $189,873 home would be approximately $935. This calculation includes principal and interest but excludes property taxes, insurance, and maintenance costs. Thus, the FMR does indeed cover the basic mortgage payment, leaving room for additional expenses.
Objection 2: Is there enough renter demand at 43.0%?
The percentage of renters in ZIP 41008 stands at 43.0%. While this figure is below the national average, it still represents a significant portion of the population. With a total population of around 13,000, this means roughly 5,590 residents are renters. The stability of renter demand can also be gauged by the local job market and economic trends. However, the data does not provide specific insights into employment growth or stability, which could further bolster confidence in the demand for rentals.
Objection 3: Will vouchers keep pace with $906 market rents?
The current market rent in ZIP 41008 is $906 per month. Voucher usage and availability can fluctuate based on federal funding and local administrative efficiency. As of the latest data, the average voucher amount in the area is not specified, making it difficult to assert whether vouchers will cover the full market rent. It is crucial for investors to monitor local housing authority announcements and federal budget updates to stay informed about any changes in voucher policies or amounts.
In summary, while the FMR is sufficient to cover the mortgage on an average-priced home, the renter demand at 43.0% is substantial but not overwhelming. Lastly, the future alignment of vouchers with market rents remains uncertain without specific data on voucher amounts and trends.
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.