Location: Ballard County, KY | Metro: Ballard 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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $105,610 | 0.92% | C |
| 3BR | $1,160 | $184,824 | 0.63% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 42024, located in Barlow, Kentucky, stands at $46,925. Given the market rate of $538 per month for rent, it becomes evident that the average household income does not align well with the cost of living. This discrepancy highlights an affordability gap that impacts both renters and landlords.
To put this into perspective, let's consider the Federal Market Rent (FMR) standard set at $900 for the fiscal year 2026. The FMR is significantly higher than the current market rate, indicating that voucher holders could potentially afford rents closer to $900 per month. However, the actual market rate of $538 suggests that many renters are already struggling to meet the current costs.
With 27.9% of the 1,205 residents being renters, competition among landlords is likely to be fierce. Landlords must carefully weigh their options between accepting Section 8 vouchers, which guarantee a steady income of up to $900 per month, or relying on cash-paying tenants who might struggle with the higher rent demands.
The takeaway for landlords considering their strategy is clear: accepting Section 8 vouchers can provide a reliable source of income, mitigating the risks associated with tenants who may have difficulty paying the $538 market rate. By opting for vouchers, landlords can secure a consistent rental income of up to $900, which is above the current market rate and helps to stabilize their cash flow. In contrast, landlords who focus solely on cash-paying tenants must prepare for potential vacancies and the challenges of collecting rent from financially strained households.
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.