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 | $680 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $166,091 | 0.73% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 41238 in the upcoming fiscal year 2026 is set at $940. This figure represents the payment standard for Section 8 housing vouchers in your area, meaning it's the maximum amount the government will pay towards a tenant's rent. However, this does not necessarily mean you can charge $940 for rent. The actual rent you charge must be reasonable and comparable to other similar properties in the same market.
In ZIP 41238, the average rent for a two-bedroom apartment is $693, according to recent Census American Community Survey (ACS) data. This indicates that the FMR is higher than the typical market rate, which could be beneficial for landlords participating in the Section 8 program. It suggests that you might be able to secure a slightly better rental income than the local average, assuming your property meets the necessary quality standards.
The demand for rental properties in this area is strong, with 35.7% of households being renters. This high percentage means there is a significant pool of potential tenants who might benefit from the Section 8 program, increasing the likelihood of finding suitable occupants for your property.
When considering the acquisition cost of a property in ZIP 41238, the median home value is around $164,437. This figure provides a baseline for understanding the investment required to enter the rental market in this area. If you're planning to purchase a property specifically for Section 8 tenants, ensure that the price aligns with this median value to avoid overpaying.
Before proceeding with your first Section 8 rental, verify that your property complies with Housing Quality Standards (HQS). These standards are set by the U.S. Department of Housing and Urban Development (HUD) and must be met before a tenant with a voucher can move in. A property inspection will confirm whether your rental unit meets these criteria, ensuring that you can proceed without delays once you have a tenant.
To summarize, the FMR of $940 provides a guideline for acceptable rent levels under the Section 8 program, which is above the local average of $693. With a high renter share and median home values indicating a reasonable acquisition cost, ZIP 41238 presents an opportunity for landlords and small-portfolio investors looking to participate in the Section 8 program. Ensure your property meets HQS to avoid complications and guarantee a smooth process when renting to Section 8 tenants.
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.