Location: Johnson County, KY | Metro: Johnson 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 | $790 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $105,856 | 0.87% | C |
| 3BR | $1,200 | $161,036 | 0.75% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 41222, East Point, KY, might have several concerns regarding the feasibility of investing in the area. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $940 (metro FY 2026) cover the mortgage on a $153,237 home?
The FMR of $940 for ZIP 41222 in the upcoming fiscal year suggests that rental income will be modest. To determine if this covers a mortgage, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an average rate of 5%, the monthly payment on a $153,237 home would be approximately $820. This means that the FMR of $940 does cover the mortgage payment comfortably, leaving some room for maintenance and other costs. However, it's important to note that this calculation assumes no down payment and a standard interest rate; actual figures may vary.
Objection 2: Is there enough renter demand at 25.5%?
The 25.5% rental rate indicates that nearly a quarter of households in East Point, KY, are renters. While this percentage is lower compared to many urban areas, it still represents a significant portion of the population. The question of whether this is enough demand hinges on the supply of rental units. If there are few rental properties available, the existing demand could support higher occupancy rates. Conversely, if there is a surplus of rental units, competition for tenants could become fierce. The data does not provide specifics on the number of rental units or vacancy rates, which are crucial for assessing demand accurately.
Objection 3: Will vouchers keep pace with $676 market rents?
The average market rent of $676 is notably below the FMR of $940, suggesting that the majority of renters can afford market rates without assistance. However, for those who do rely on housing vouchers, it's essential to ensure that the voucher amounts match or exceed the market rents. In East Point, KY, the data does not specify the current average voucher amount or any projected increases. Given the discrepancy between the market rent and the FMR, it's likely that vouchers will cover the average rent of $676. Yet, this assumption needs verification with HUD or local housing authority data to confirm the adequacy of voucher amounts in the face of potential rent increases.
In summary, while the FMR of $940 is sufficient to cover a mortgage on a home priced at $153,237, the rental demand at 25.5% and the adequacy of housing vouchers relative to market rents of $676 require further investigation. Landlords and small-portfolio investors should seek additional data on local rental market dynamics and voucher policies before making investment decisions in ZIP 41222.
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.