Section 8 Fair Market Rent (FMR) for ZIP 42035 - 2027

Location: Graves County, KY | Metro: Carlisle County, KY HUD Metro FMR Area

Investment Score for ZIP 42035

D
Monthly Rent (2BR)
$960
Median Price (2BR)
$141,700
1% Rule
0.68%
Annual Yield
8.13%

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$670
1 Bedroom$790
2 Bedrooms$960
3 Bedrooms$1,260
4 Bedrooms$1,330
5 Bedrooms$1,543
6 Bedrooms$1,728
7 Bedrooms$1,866
8 Bedrooms$1,959

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 $960 $141,700 0.68% D
3BR $1,260 $214,004 0.59% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
816
Median Household Income
$55,515
Housing Units
307
Renter Percentage
8.6%
Occupancy Rate
90.9%
Renter Occupied
24

The median income in ZIP code 42035, Kentucky stands at $55,515. Given the absence of specific market rate data, it is imperative to focus on the voucher payment standard to gauge affordability. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910. This figure serves as a benchmark for understanding rental costs relative to household incomes.

To put this into perspective, consider that only 8.6% of the 816 residents are renters. This indicates a relatively low demand for rental properties within the area. However, the affordability gap between the median income and the FMR suggests that many households might struggle to pay market rates without assistance.

The FMR of $910 is significantly lower than what would be expected based on the median income, indicating that rental properties priced around this level are more likely to be affordable to the majority of the local population. Landlords who aim to attract tenants should consider pricing their units close to or below the FMR to ensure they remain competitive in the local market.

The takeaway for landlords is clear: focusing on accepting vouchers can be a strategic advantage in attracting tenants. While cash-paying tenants might offer higher rents, the limited number of renters and the affordability gap suggest that those willing and able to pay above the FMR may be few. By aligning with voucher programs, landlords can tap into a more stable tenant pool, ensuring occupancy and a steady income stream that matches the economic reality of the area.

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.