Section 8 Fair Market Rent (FMR) for ZIP 42053 - 2027

Location: McCracken County, KY | Metro: Ballard County, KY HUD Metro FMR Area

Investment Score for ZIP 42053

Monthly Rent (2BR)

$1,190

Median Price (2BR)

$148,410

1% Rule

0.8%

Annual Yield

9.62%

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	$830
1 Bedroom	$940
2 Bedrooms	$1,190
3 Bedrooms	$1,420
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

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	$1,190	$148,410	0.8%	C
3BR	$1,420	$233,126	0.61%	D
4BR	$1,630	$329,926	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,307

Median Household Income

$80,765

Housing Units

2,347

Renter Percentage

20.7%

Occupancy Rate

85.3%

Renter Occupied

414

The ZIP code 42053, located in Kevil, Kentucky, presents a unique opportunity for real-estate investors interested in the Section 8 housing market. Nestled in a rural setting, Kevil offers a stable environment with a mix of homeowners and renters, making it a viable option for those looking to invest in both rental properties and single-family homes.

Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,110. This figure indicates the maximum amount that a landlord can charge for a Section 8 voucher, providing a clear benchmark for rental pricing.
The average market rent, according to Census ACS data, is $924. This suggests that there is a potential for modest premium pricing when participating in the Section 8 program, given the higher FMR threshold.
The median home value in the area is $173,437. This represents a relatively low barrier to entry for property acquisition, especially for those looking to diversify their portfolio with affordable housing options.
Renters make up 20.7% of the local population. This statistic underscores a significant portion of the community that relies on rental properties, creating demand for well-managed units.
The median household income is $80,765. While this figure supports a moderate level of economic stability, it also highlights that a substantial number of residents may qualify for the Section 8 program due to the difference between their income and the cost of living in the area.
Data on days on market (DOM) is not available. However, this absence does not necessarily indicate poor market performance but rather a lack of recent sales activity, which could be beneficial for long-term investment strategies focusing on steady, rather than speculative, returns.

Investors considering the Kevil, KY market should note the favorable conditions presented by the combination of a moderate median home value and a higher FMR compared to the current market rent. The presence of a significant renter population, coupled with the median income levels, suggests a robust demand for subsidized housing. Despite the lack of DOM data, the overall economic stability and the potential for modest rental premiums make this area a sound choice for those seeking reliable, long-term rental investments.

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.