Location: Livingston County, KY | Metro: Livingston 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 | $1,060 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,800 | $175,939 | 1.02% | B |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 42058, centered around Ledbetter, Kentucky, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,570, while the Census ACS data indicates that the average market rent in the area is $1,110. This creates a gap of $460 per month, which translates to a 30.8% discount for landlords who accept Section 8 vouchers.
Given that the FMR exceeds the market rent, this scenario presents an opportunity for landlords and small-portfolio investors to maximize their yields. Accepting Section 8 vouchers allows property owners to charge rents that are closer to the higher FMR, thus increasing their monthly income by $460 compared to the typical market rate. This is particularly advantageous considering the local context where only 19.0% of residents are renters, indicating a potentially lower supply of rental properties relative to demand.
Ledbetter, KY has a median home value of $157,440 and a median household income of $66,852. These figures suggest that homeownership is relatively affordable, but the median income also implies that many families might rely on assistance programs like Section 8 to afford housing. By accepting vouchers, landlords can attract a steady stream of tenants who are guaranteed to receive federal assistance, thereby reducing the risk of vacancies and ensuring a reliable cash flow.
However, it's important to note that renting to voucher tenants comes with its own set of considerations. While the yield potential is higher due to the FMR being above the market rent, landlords must adhere to HUD standards and undergo regular inspections. Additionally, there may be delays in receiving rent payments, although these are typically minimal.
In summary, the Section 8 program in ZIP 42058 offers a clear financial advantage to landlords willing to participate. With the FMR significantly higher than the current market rent, voucher tenants can help bridge the gap and provide a more lucrative return on investment, especially in a region where rental demand is lower and homeownership is a common choice.
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.