Location: Owen 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 | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $240,294 | 0.48% | F |
| 3BR | $1,370 | $290,045 | 0.47% | F |
| 4BR | $1,690 | $353,864 | 0.48% | F |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP code 41035, located in Dry Ridge, KY, several factors must be considered that could negatively impact the investment. Firstly, tenant turnover poses a significant risk. The market rent for the area is $870, which is notably lower than the Fair Market Rent (FMR) of $990 for fiscal year 2024. This discrepancy suggests that tenants might be more likely to leave when they find higher-paying jobs or move into homes that offer better value, leading to increased turnover rates.
Vacancy exposure is another concern. The Days on Market (DOM) for rental properties in this area is not available, indicating potential difficulties in securing tenants quickly. This uncertainty can lead to extended periods of vacancy, resulting in lost rental income. Additionally, the typical home value in ZIP 41035 is $290,646, while the median household income is $68,138. This imbalance between home values and income levels increases the likelihood of deferred maintenance, as property owners may struggle to keep up with necessary repairs and improvements, potentially affecting the quality of the rental units.
However, these risks are tempered by the high proportion of renters in the area, with 27.7% of residents being renters. High renter density often correlates with greater demand for housing vouchers, which can provide a steady stream of reliable tenants. The presence of a substantial number of renters also indicates that there is a robust market for rentals, which can help mitigate the risk of vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.