Location: Metcalfe 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 | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $152,170 | 0.6% | F |
| 3BR | $1,160 | $226,391 | 0.51% | F |
| 4BR | $1,320 | $279,244 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 42127, encompassing Cave City, KY, presents a market characterized by subtle yet discernible dynamics between supply and demand. The Fair Market Rent (FMR) stands at $870, reflecting the federal guidelines for rental affordability in the region, set for metro FY 2026. Meanwhile, the actual market rent as reported by the Census ACS is lower at $713, suggesting that landlords may have some flexibility in pricing due to a competitive environment.
A key indicator of market conditions is the price-cut share, which in this case is only 0.2%. This figure implies that very few properties are being discounted, indicating a relatively stable market where demand is closely aligned with supply. However, the lack of available data on days on market (DOM) makes it challenging to draw definitive conclusions about the speed at which properties are selling or renting. The median home value of $204,352 provides insight into the overall economic status of homeownership in the area, suggesting that while not extremely high, property values are still significant enough to impact the local economy.
The 49.1% renter share in ZIP 42127 highlights a balanced market where nearly half of the residents are renters. This substantial proportion of renters indicates ongoing long-term housing pressure, as a large number of individuals are continuously seeking rental properties rather than purchasing homes. This dynamic can be attributed to various factors, including economic conditions, job stability, and personal preferences. For landlords and small-portfolio investors, this suggests a steady demand for rental properties, making the area potentially attractive for investment in rental real estate.
In summary, the market in ZIP 42127 exhibits a balance between supply and demand, with a slight indication towards a demand-driven scenario given the low price-cut share and the significant renter population. Landlords and investors should consider these factors when evaluating the potential for rental income and property appreciation in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.