Location: Lyon County, KY | Metro: Crittenden 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $221,987 | 0.41% | F |
| 3BR | $1,260 | $279,052 | 0.45% | F |
| 4BR | $1,310 | $419,063 | 0.31% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP 42055 in Kuttawa, KY, reveals a significant opportunity. The HUD Fair Market Rent (FMR) for the area is set at $870 for the fiscal year 2026, while the Census ACS reported average market rent stands at $684. This discrepancy means that voucher tenants can cashflow comfortably at the FMR rate, providing landlords with a solid income stream.
To further analyze the investment potential, consider the median home value in ZIP 42055, which is $219,521. Using this figure, we can calculate the rent-to-price ratio. With a monthly rent of $684, the annual rent would be approximately $8,208. Dividing this by the median home value yields a rent-to-price ratio of roughly 3.74%. This indicates that rental income represents a decent portion of the property's value, making it a viable option for investors seeking steady returns.
The data also shows that there is no available information regarding the median days on market (DOM) and the percentage of properties that require price cuts. However, given the relatively low median home value and the positive cashflow potential, these metrics likely indicate stable market conditions without significant fluctuations.
In conclusion, the strongest angle for investors in ZIP 42055 is cashflow. The difference between the HUD FMR and the actual market rent provides a substantial margin for landlords to cover expenses and generate profit, making it an attractive option for those looking to invest in Section 8 properties.
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.