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 | $650 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $143,541 | 0.83% | C |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 41260 for Section 8 purposes, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $870 per month cover the debt service on a property valued at $132,132?
Yes: The FMR is sufficient to cover the debt service, making the investment viable from a financial standpoint.
No: The FMR does not cover the debt service, which means the investment would likely result in a financial loss.
It Depends: This scenario is less likely given the fixed nature of both the FMR and the property value. However, it could depend on the exact terms of the mortgage, such as interest rates and loan duration.
Step 2: Is the market rent above, at, or below the FMR?
Above: If the market rent exceeds the FMR, landlords may struggle to find tenants willing to pay the higher rate when they can receive government-subsidized housing at the FMR. This suggests that relying solely on Section 8 might limit occupancy.
At: Market rent matching the FMR indicates a balanced situation where landlords can attract tenants without difficulty. This scenario supports a positive outlook for Section 8 investments.
Below: If the market rent is below the FMR, landlords might face competition from non-subsidized properties. However, the guaranteed income from Section 8 could still make the investment attractive.
Step 3: Do the 39.9% of renters and the number of days on the market (DOM) indicate enough demand?
Yes: With nearly 40% of residents renting, there is a significant base of potential tenants. Additionally, a low DOM suggests quick turnover and strong demand, which is favorable for landlords.
No: A lower percentage of renters combined with high DOM would indicate weak demand, making it challenging to fill units and sustain the investment.
It Depends: If the percentage of renters is high but the DOM is also high, it could mean that while there are many renters, finding suitable tenants for Section 8 properties might be harder due to specific requirements or preferences.
In conclusion, the viability of purchasing property in ZIP 41260 for Section 8 purposes hinges on the answers to these questions. A positive outcome on all fronts—FMR covering debt service, market rent aligning with or being below the FMR, and a robust rental market—would support a "yes" recommendation. Conversely, negative outcomes on any of these points would lead to a "no." Partially positive or mixed outcomes would require further investigation into local real estate trends and tenant needs.
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.