Location: Morgan County, KY | Metro: Elliott 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 | $760 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $202,625 | 0.65% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 41171 stands at $42,609, indicating that households in this area have limited financial resources. The market rate for rent, according to Census ACS data, is $522 per month. This means that a significant portion of the average household's income would be dedicated to covering rent expenses, making it challenging for residents to find affordable housing options.
Comparatively, the Fair Market Rent (FMR) standard set for the metro area in fiscal year 2026 is $910. This represents a substantial gap between what the market is currently charging and what the government considers a fair rent. For renters, this discrepancy means that finding an apartment within their budget is difficult, especially when the market rate already consumes a large share of their earnings.
In ZIP 41171, with a population of 4,611 and 19.1% of them being renters, the competition among landlords is intense. Landlords must carefully consider their pricing strategies to attract tenants who can either afford the market rate or benefit from the rental assistance programs. Offering units at the market rate of $522 could help fill vacancies quickly but might limit long-term sustainability if residents face financial strain. On the other hand, participating in voucher programs that align with the FMR of $910 ensures a steady stream of tenants, albeit at a higher cost per unit.
The takeaway for landlords is that while cash-paying tenants may be more common, they often come with the risk of non-payment due to the high cost of living relative to income. Voucher programs, although more bureaucratic, provide a reliable source of income and reduce the likelihood of unpaid rent. To succeed, landlords should evaluate both strategies based on the local economic conditions and tenant needs.
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.