Location: Fulton County, KY | Metro: Fulton 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 | $680 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $72,059 | 1.32% | A |
| 3BR | $1,320 | $105,421 | 1.25% | A |
U.S. Census Bureau data (2024)
The rent math in ZIP 42050, encompassing Hickman, KY, and the Fulton County, KY metro area, does not align favorably for landlords. The Federal Market Rent (FMR) for the fiscal year 2026 is set at $870, whereas the current market rent stands significantly lower at $427 according to the Census ACS. This disparity indicates that landlords may struggle to cover costs and make a profit if they aim to meet the FMR, especially considering the actual rents being charged.
Regarding property acquisition, ZIP 42050 offers a median home value of $78,609, which is relatively low. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts suggests that while acquisition might be affordable, there's insufficient information to determine the ease of selling properties or adjusting prices to meet market demands.
Tenant demand is present but limited by the size of the local population. With a total of 3,015 residents and a renter share of 34.7%, landlords can expect a steady but modest pool of potential tenants. Given the small population, competition among rental properties could be fierce, necessitating competitive pricing and amenities to attract and retain tenants.
In conclusion, ZIP 42050 presents a challenging environment for landlords due to the significant gap between the FMR and the actual market rent. While property acquisition is affordable, the limited population and high renter share indicate a constrained market. Landlords must carefully manage their costs and consider local conditions to ensure profitability and sustainability in this 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.