Location: Marshall County, KY | Metro: McCracken County, KY HUD Metro FMR Area
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 | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $135,599 | 0.71% | D |
| 3BR | $1,150 | $213,593 | 0.54% | F |
| 4BR | $1,600 | $323,562 | 0.49% | F |
| 5BR | $1,856 | $420,427 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 42003, located in Paducah, Kentucky within McCracken County, stands out due to its unique demographic and economic characteristics. With a population of 29,672 residents, it has a rental rate of 29.2%, indicating a significant portion of the community lives in rented properties. The median income for residents is $55,791, while the median home value is notably higher at $161,223, reflecting a robust housing market.
The economics of Section 8 vouchers in ZIP 42003 are favorable for landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910, which is substantially above the current market rent of $740 according to Census ACS data. This means that landlords can expect to receive higher rents through the voucher program compared to typical market rates, making it an attractive option for property owners looking to maximize their income.
The data signature for ZIP 42003 suggests a stable environment. Despite the relatively high rental rate, the median income supports the ability of renters to contribute to their housing costs. Additionally, the gap between the FMR and the market rent indicates a consistent demand for affordable housing options, ensuring that landlords can reliably lease their properties through the voucher program. The median home value also points towards a steady real estate market, where investment in property can yield good returns. Overall, the combination of these factors presents a stable scenario for landlords and small-portfolio investors in Paducah's ZIP 42003.
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.