Section 8 Fair Market Rent (FMR) for ZIP 42001 - 2027
Location: McCracken County, KY | Metro: McCracken County, KY HUD Metro FMR Area
Investment Score for ZIP 42001
C
Monthly Rent (2BR)
$1,220
Median Price (2BR)
$145,857
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $850 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 2BR |
$1,220 |
$145,857 |
0.84% |
C |
| 3BR |
$1,450 |
$241,773 |
0.6% |
F |
| 4BR |
$1,740 |
$373,262 |
0.47% |
F |
| 5BR |
$2,018 |
$532,345 |
0.38% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$71,365
When considering whether to purchase a property in ZIP code 42001 (Paducah, KY) for Section 8 investment, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1,150 cover the debt service on a $222,478 property?
- Yes: The FMR of $1,150 is sufficient to cover the debt service on a property priced at $222,478. This means that a landlord can expect to receive rental income that meets their financial obligations.
- No: The FMR of $1,150 does not cover the debt service on a property priced at $222,478. In this case, landlords would need to find other sources of income or consider properties with lower acquisition costs.
- Is the market rent of $1,271 (ZORI) above, at, or below the FMR?
- Above FMR: The ZORI of $1,271 is higher than the FMR of $1,150. Landlords could potentially earn additional income beyond what is covered by Section 8 payments.
- At FMR: The ZORI of $1,271 is nearly equal to the FMR of $1,150. This suggests that the market rent aligns closely with the Section 8 payment, leaving little room for profit outside of the program.
- Below FMR: The ZORI of $1,271 is above the FMR of $1,150, so this scenario does not apply.
- Are 36.5% renters and N/A-day days on market (DOM) indicative of enough demand?
- It Depends: With 36.5% of residents being renters, there is a moderate level of demand for rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. Landlords should consider additional factors such as vacancy rates and the local economy to make an informed decision.
The decision to invest in ZIP 42001 hinges on these three key points. If the FMR covers the debt service, the market rent is favorable, and there is sufficient demand, then purchasing a property here for Section 8 is a viable option. Conversely, if any of these criteria are not met, further investigation is necessary before making an investment decision.
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.