Location: Ballard County, KY | Metro: Ballard 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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $119,841 | 0.85% | C |
| 3BR | $1,220 | $169,693 | 0.72% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 42087, located in Wickliffe, KY, within the Ballard County, KY HUD Metro FMR area, does not align favorably. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $950, whereas the actual market rent, as per the Census ACS, stands at $729. This discrepancy means that landlords may struggle to meet the higher FMR expectations with current market rates, leading to potential financial strain.
Acquisition in this ZIP code is relatively affordable. With a median home value of $125,359, purchasing property is within reach for many investors. However, the lack of data on days on market (DOM) and the percentage of homes that had their prices cut indicates that there might be some uncertainty regarding the ease of acquiring properties. This could mean that while the price point is attractive, the process might not be as straightforward as it appears.
Tenant demand in ZIP 42087 is moderate. The total population is 2,089, and 17.8% of these residents are renters. This suggests that there is a reasonable pool of potential tenants, though the demand is not exceptionally high. Landlords can expect steady but not overwhelming interest from renters looking for housing in this area.
In conclusion, while the acquisition cost is favorable, the rent math does not work in ZIP 42087 due to the significant gap between the HUD's FMR and the actual market rent. Tenant demand exists but is limited by the relatively low number of renters in the area. Investors should proceed with caution, ensuring they can manage their costs effectively to achieve profitability given the current rental environment and the uncertain acquisition dynamics.
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.