Location: Calloway County, KY | Metro: Calloway 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 | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $147,630 | 0.8% | D |
| 3BR | $1,400 | $246,951 | 0.57% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 42020, located in Almo, KY, stands at $64,838. This figure is crucial when considering the local rental market, where the market rate for rent is reported at $658 according to the Census ACS. Given these numbers, it becomes evident that a household in this area would find it challenging to afford the market rate rent, especially when accounting for other living expenses.
To further analyze the situation, let's compare the market rate rent to the Fair Market Rent (FMR) set by the government for the metro area in fiscal year 2026, which is $1,100. The discrepancy between the $658 market rate and the $1,100 FMR highlights a significant affordability gap for renters. Landlords in this region should be aware that the actual cost of housing is below the government's standard, indicating that there might be a higher demand for affordable housing options.
With 17.1% of the population being renters and a total population of 2,476, landlords must consider the competition they face in attracting tenants. The affordability gap suggests that many potential renters may struggle to find housing within their budget, leading to increased competition among landlords who offer lower rents. This scenario can impact vacancy rates and the overall rental market dynamics in ZIP 42020.
For landlords contemplating between voucher programs and cash-paying tenants, the data points to a strategic advantage in accepting vouchers. Given that the voucher payment standard is closer to the FMR ($1,100) than the typical market rate ($658), landlords could potentially stabilize occupancy rates and attract a broader tenant pool. Vouchers ensure a steady income stream, aligning closely with the government's FMR standards, and could help mitigate risks associated with economic fluctuations.
In conclusion, landlords in ZIP 42020 should recognize the financial challenges faced by local renters and the potential benefits of participating in voucher programs. By doing so, they can tap into a more stable and diverse tenant base, while also addressing the affordability gap present in the community.
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.