Location: Barren County, KY | Metro: Barren 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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $271,683 | 0.46% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 42123 presents a unique opportunity for landlords and small-portfolio investors to capitalize on current trends and prepare for future conditions. With a median home value of $217,637, the area is relatively affordable compared to many other regions, making it attractive for both first-time buyers and investors looking to diversify their portfolios.
The data indicates that there is no significant reduction in listing prices, as the percentage of listings reduced is listed as N/A%. This suggests that sellers are maintaining their asking prices, indicating strong seller confidence and potentially signaling that the market could remain stable or even appreciate over the next 12-24 months. However, the median days on market (DOM) being listed as N/A does not provide clear insight into how quickly properties are selling, which would be an important factor in assessing the overall demand.
On the rental side, the Fair Market Rent (FMR) for ZIP 42123 is projected to be $930 in the fiscal year 2026. This figure represents a metro-wide average and should be considered in light of local market conditions, which are also listed as N/A. Given the affordability of the housing stock and the projected stability in rental rates, landlords can expect a steady income stream without the need for frequent price adjustments.
For long-term hold investors, the setup implies a realistic appreciation thesis. The stable median home value and the lack of significant reductions in listing prices suggest that the area is not experiencing a rapid increase in supply, which could depress prices. Furthermore, the relatively low median home value compared to broader market trends could indicate room for growth, especially if economic factors such as job creation or infrastructure improvements bolster the local economy.
Investors should focus on properties that offer a balance between rental income and potential resale value. While the data does not provide a definitive picture of the short-term market dynamics, the longer-term outlook appears favorable for those willing to hold onto their investments. The combination of a manageable median home value and a stable rental market provides a solid foundation for continued positive returns.
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.