Location: Johnson County, KY | Metro: Floyd 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 | $660 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $173,142 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 41216 presents a unique challenge for both renters and landlords alike. Given the median income of $47,542, it becomes evident that the local market rate for rent is unaffordable for many households. Unfortunately, the specific market rate is not available, but we can infer that it significantly exceeds the median income level.
In comparison, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,030. This figure represents a more realistic rental price point for the majority of residents in ZIP 41216. The disparity between the median income and the likely market rate suggests an affordability gap where many residents cannot pay the going rates without assistance.
With 21.4% of the population being renters and a total population of 986, the competition among landlords is keen. To attract tenants, some landlords may need to consider accepting Section 8 vouchers, which guarantee timely payments at a fixed rate. The FMR of $1,030 provides a benchmark for those who must rely on government subsidies to cover their housing costs.
The takeaway for landlords is clear: focusing on cash-paying tenants may limit your pool of potential renters, especially if the market rate is prohibitively high. By accepting Section 8 vouchers, landlords can tap into a stable source of income while also serving a community in need. This strategy aligns with the economic realities of ZIP 41216 and ensures a steady stream of reliable tenants.
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.