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 | $800 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $92,822 | 0.99% | C |
| 3BR | $1,200 | $148,573 | 0.81% | C |
| 4BR | $1,320 | $182,860 | 0.72% | D |
U.S. Census Bureau data (2024)
In Wittensville, KY (ZIP 41240), the real estate market presents a unique scenario that is worth analyzing for both landlords and small-portfolio investors. The median home value stands at $140,448, indicating a relatively affordable market. With only 0.1% of listings experiencing price reductions, it signals strong seller's market conditions where pricing power remains firmly in the hands of homeowners and sellers.
The median days on market (DOM) being listed as N/A suggests either very quick sales or an insufficient sample size for meaningful analysis. Given the low percentage of price reductions, it is reasonable to infer that homes are selling swiftly, further reinforcing the notion of a robust seller's market.
Turning to the rental market, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $870, whereas the current market rate is around $673 based on Census ACS data. This significant gap indicates potential for rental income growth as the market adjusts to align with the FMR projections. Landlords can expect upward pressure on rents, which could lead to higher cash flows from their properties.
For long-term hold investors, the data suggests a realistic appreciation thesis. The combination of a stable median home value and minimal price reductions points towards a resilient housing market. As the rental market trends upwards to meet the FMR, this could also drive residential property values higher, creating a favorable environment for capital appreciation.
However, it is important to note that while the setup is positive, the actual rate of appreciation will depend on broader economic factors and local market conditions. Investors should consider diversifying their portfolios and monitoring regional economic indicators to make informed decisions.
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.