Location: Mason County, KY | Metro: Fleming 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 | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $116,258 | 0.78% | D |
| 3BR | $1,130 | $178,275 | 0.63% | D |
| 4BR | $1,190 | $243,367 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 41041, centered around Flemingsburg, KY, reveals a significant opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, while the current market rent, based on Census ACS data, stands at $704. This means that there is a gap of $166, or approximately 23.6%, between the FMR and the actual market rent.
Given that the FMR exceeds the market rent, this scenario is particularly advantageous for voucher tenants and represents a yield play for property owners. Landlords who accept Section 8 vouchers can expect to receive higher rental payments compared to what they might get from traditional market-rate tenants. The additional income from the voucher program can help offset any potential maintenance costs or vacancy periods, thereby increasing the overall profitability of their investment properties.
In the context of Flemingsburg, where 33.7% of residents are renters and the median home value is $175,320, the financial benefits of participating in the Section 8 program become even more pronounced. With a median household income of $42,772, many local renters would find it challenging to afford market-rate rents without assistance. Therefore, accepting Section 8 vouchers allows landlords to tap into a larger pool of potential tenants, ensuring higher occupancy rates and more consistent cash flow.
Moreover, the higher FMR rate ensures that landlords receive a payment that is closer to the fair market value of their properties, rather than being forced to accept lower market rents. This can be crucial for maintaining the quality of rental units and covering necessary expenses such as utilities, insurance, and property taxes.
However, it's important to note that while the FMR provides a higher rental rate, landlords must also consider the administrative aspects of managing voucher tenants. These include compliance with HUD regulations, potential delays in receiving rent payments, and the requirement to undergo periodic inspections. Despite these considerations, the financial advantage of closing the gap between the FMR and the market rent makes the Section 8 program an attractive option for landlords in Flemingsburg, KY.
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.