Location: Marshall County, KY | Metro: Calloway 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 | $710 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,220 |
| 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 |
|---|---|---|---|---|
| 1BR | $760 | $76,617 | 0.99% | C |
| 2BR | $990 | $104,986 | 0.94% | C |
| 3BR | $1,220 | $190,250 | 0.64% | D |
| 4BR | $1,310 | $262,886 | 0.5% | F |
| 5BR | $1,520 | $322,944 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 42066 (Mayfield, KY) can be analyzed using the Fair Market Rent (FMR) and market rent figures provided. The annualized 2BR FMR for FY 2026 is $970, while the market rent based on Census ACS data is $774. Using these figures against the median home value of $158,352, we can derive the implied gross yields.
First, let's calculate the gross yield based on the FMR. At an annual rent of $970, the total annual income would be $11,640 ($970 x 12 months). Dividing this by the median home value of $158,352 gives us an implied gross yield of approximately 7.36%. This means that if a property were rented at the FMR, it would generate a 7.36% return on investment annually.
Next, we'll calculate the gross yield using the market rent figure. At an annual rent of $774, the total annual income would be $9,288 ($774 x 12 months). Dividing this by the median home value of $158,352 gives us an implied gross yield of approximately 5.87%. This indicates that renting at the market rate would result in a lower annual return of 5.87%.
Given the 27.8% renter density in Mayfield, KY, it is important to consider how many units are likely to be occupied by renters participating in the Section 8 program. While the FMR-based gross yield of 7.36% is higher, it may not be realistic due to the potential difficulty in securing tenants willing to pay that rate through the Section 8 program. The market rent-based gross yield of 5.87%, however, aligns more closely with what landlords might realistically expect in terms of rental income.
The N/A-day Days on Market (DOM) suggests that there is either limited data available or that properties in Mayfield, KY are sold quickly, which could indicate strong demand for housing in the area. However, this does not necessarily translate into higher rental rates. Landlords should focus on the 5.87% gross yield as a more accurate representation of potential returns, considering the actual rental market conditions and the participation rate in the Section 8 program.
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.