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 | $870 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $124,334 | 1.01% | B |
| 3BR | $1,490 | $187,911 | 0.79% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 42081 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,180 for the HUD Metro FMR Area in fiscal year 2026 contrasts sharply with the actual market rent of $850, as reported by the Census ACS. This discrepancy means that landlords would have to charge significantly above the market rate to meet FMR standards, which could deter potential tenants.
Acquisition of properties in ZIP 42081 is relatively affordable given the median home value of $133,394. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts indicates a less transparent real estate market. This opacity can pose risks for small-portfolio investors looking to understand the local property turnover and pricing dynamics accurately.
Tenant demand in ZIP 42081 is modest, with a total population of 2,161 and only 15.0% of residents being renters. This low renter share suggests limited interest from tenants and potentially higher vacancy rates for landlords and investors. Additionally, the small overall population implies a narrow pool of potential tenants, which could lead to increased competition among rental properties and further pressure on rental rates.
Verdict: ZIP 42081 presents a challenging environment for landlords and small-portfolio investors due to the unfavorable rent math, where FMR is substantially higher than market rents. While property acquisition appears affordable, the opaque market conditions and limited tenant demand pose significant risks. The small number of renters and the potential for higher vacancy rates make it less attractive for investment compared to areas with stronger tenant demand and more favorable rent-to-value ratios.
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.