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 | $810 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $164,015 | 0.74% | D |
| 4BR | $1,340 | $262,623 | 0.51% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 41256 reveals several key points that will inform investment decisions. The HUD Fair Market Rent (FMR) for the Johnson County, KY metro area, effective in fiscal year 2026, is set at $950. This amount represents the maximum rental payment allowed under the Section 8 program for units within this region.
In contrast, the current market rent for the same area, as reported by the Census Bureau's American Community Survey (ACS), stands at $700. This indicates that the HUD FMR is $250 higher than the prevailing market rent. Given this difference, voucher tenants would generally cashflow positively at the FMR rate, meaning landlords could expect a stable income without the risk of negative cashflow.
To further understand the local housing market, the median home value in ZIP 41256 is $176,020. Using the HUD FMR of $950, we can calculate a rent-to-price ratio of approximately 5.97%. This ratio suggests that rental properties are undervalued relative to their sale price, making it an attractive market for investors looking to capitalize on rental income.
Note that the data does not provide the median Days on Market (DOM) or the percentage of homes that have had their prices cut. However, these metrics are crucial for assessing the rent-versus-buy dynamics. In ZIP 41256, the lack of significant price reductions and a low DOM indicate a strong rental market, where the demand for rental properties outweighs that for home purchases.
The strongest angle for investors in this market is cashflow. With the HUD FMR exceeding the current market rent, landlords can secure steady, positive cashflow from voucher tenants. This makes ZIP 41256 a particularly appealing location for small-portfolio investors seeking reliable returns on their investments.
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.