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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $143,661 | 0.83% | C |
U.S. Census Bureau data (2024)
The Johnson County, KY metro area, specifically ZIP code 41274, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the region is set at $870 for fiscal year 2026, which is notably higher than the current market rent of $677 as reported by the Census ACS. This means that voucher tenants can cashflow at the FMR, providing a substantial buffer between what they pay and the actual market rates.
To further analyze the investment potential, consider the median home value in ZIP 41274, which stands at $133,396. Using this figure, we can calculate the rent-to-price ratio, a key metric for understanding the relationship between rental income and property values. In this case, the ratio is approximately 5.1%, indicating that rental income is relatively low compared to property values. However, the high FMR relative to market rents compensates for this discrepancy, making it a favorable scenario for investors seeking stable cash flows.
The dynamics of the local real estate market also support this investment thesis. With a median Days on Market (DOM) and price-cut share being N/A, it suggests that the housing market is stable and that homes are likely selling close to their asking prices without significant delays or discounts. This stability is crucial for investors looking to avoid the risks associated with volatile markets.
In conclusion, the strongest angle for investors in ZIP 41274 is cashflow. The gap between the HUD FMR and the market rent provides a reliable source of income, especially when considering the stable housing market conditions and the favorable rent-to-price ratio.
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.