Location: Mason County, KY | Metro: Carter County, KY 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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $104,967 | 0.95% | C |
| 3BR | $1,280 | $140,555 | 0.91% | C |
| 4BR | $1,400 | $192,430 | 0.73% | D |
U.S. Census Bureau data (2024)
ZIP 41179, located in Mason County, Kentucky, presents itself as an ideal cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) set at $860 for the fiscal year 2024 and the local market rent of $557. This gap indicates that landlords can receive higher rents through Section 8 vouchers compared to what they might charge on the open market.
The median home value in ZIP 41179 is $115,093, which suggests that property acquisition costs are relatively low. This makes it easier for investors to achieve positive cash flow when managing properties under the Section 8 program. The higher voucher payment ensures that tenants can afford to pay the rent without financial strain, leading to lower vacancy rates and more stable income streams.
While the area has a 24.2% renter share and a median income of $39,217, these factors do not outweigh the benefits of using ZIP 41179 as a cash-flow anchor. The 0.2% price-cut share and N/A-day Days on Market (DOM) indicate that the housing market is somewhat stable but does not show strong signs of rapid appreciation, making it less attractive as an appreciation play. Instead, the focus should be on leveraging the consistent income provided by the Section 8 program to ensure steady cash flow.
In conclusion, ZIP 41179 serves best as a cash-flow anchor due to the substantial difference between the FMR and market rent, allowing landlords to benefit financially while providing affordable housing options to low-income families.
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.