Location: Calloway 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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $189,568 | 0.57% | F |
| 3BR | $1,300 | $356,097 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP 42076, New Concord, KY, reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2026 is set at $1,070, while the average monthly rent in the area is $963. This means the FMR is $107 higher than the market rent, or approximately 11.1% above the current market rate.
In this context, voucher tenants make New Concord a yield play. Landlords can expect to receive a higher rent payment through Section 8 vouchers compared to the open-market rate. This difference allows for better cash flow and potentially higher returns on investment.
New Concord has a rental population of 30.4%, with a median home value of $137,741 and a median income of $36,250. The high vacancy rate of 49.1% indicates that there is ample supply of rental units, which can lead to competitive pricing pressures. However, the FMR being above the market rent suggests that landlords participating in the Section 8 program can mitigate some of these risks.
The median income level is relatively low, which could strain affordability for tenants. Despite this, the higher FMR ensures that landlords receive a more stable and predictable rent income, which can be crucial in areas with economic challenges.
Investors should consider the FMR as a benchmark for setting rents that are both affordable for tenants and profitable for landlords. Given the specific conditions in New Concord, the gap between FMR and market rent presents an opportunity to generate a positive yield through 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.