Location: Graves 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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $139,758 | 0.64% | D |
| 2BR | $1,170 | $165,204 | 0.71% | D |
| 3BR | $1,390 | $237,610 | 0.58% | F |
| 4BR | $1,540 | $332,119 | 0.46% | F |
| 5BR | $1,786 | $408,758 | 0.44% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 42071, located in Murray, Kentucky, reveal a market in equilibrium, yet poised for change. The Fair Market Rent (FMR) set at $1,110 for the fiscal year 2026 reflects the government's assessment of rental affordability in the area. This figure is closely aligned with the actual market rent, known as the Zillow Observed Rent Index (ZORI), which stands at $1,149. This proximity suggests that the market is not experiencing significant distortions due to either oversupply or undersupply of rental units.
The 0.2% price-cut share indicates that very few landlords are reducing their rents to attract tenants, implying that there is a stable demand for rentals. However, the lack of data on days on market (DOM) for listings makes it difficult to ascertain whether the market is currently favoring landlords or renters. A high DOM would suggest a buyer-friendly market, whereas a low DOM could indicate strong competition among buyers.
The median home value of $179,970 places Murray in a category of affordable homeownership. This figure can be compared against local incomes and employment trends to gauge the financial feasibility for potential homeowners. If incomes are stagnant or declining, this could translate into increased rental demand as fewer residents can afford to buy homes.
A 40.0% renter share highlights a substantial portion of the population that relies on renting rather than owning. This statistic underscores the ongoing pressure on the rental market and suggests that a significant segment of the community may be sensitive to economic changes, such as job market shifts or income volatility. Over the long term, a higher renter share can signal persistent housing pressure, as it often correlates with a lack of affordable homeownership options.
In summary, ZIP 42071 presents a balanced rental market with stable prices and a notable reliance on rental housing. Landlords and small-portfolio investors should monitor broader economic indicators and local housing trends to anticipate future shifts in the market. The interplay between rental demand and homeownership affordability will continue to shape the housing landscape in Murray.
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.