Location: Monroe County, KY | Metro: Allen 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 | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $159,931 | 0.58% | F |
| 3BR | $1,230 | $217,934 | 0.56% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering the ZIP code 42133 in Fountain Run, KY, often raise several key concerns regarding the feasibility of investing in properties here. Let's address these objections with available data.
Will FMR $850 (zip FY 2024) cover the mortgage on a $143,737 home?
The Fair Market Rent (FMR) for ZIP 42133 is set at $850 for FY 2024. To determine if this amount can cover the mortgage on a $143,737 home, we need to consider current mortgage rates. According to recent sources, the average 30-year fixed mortgage rate in Fountain Run, KY, ranges between 6.5% and 7%. Assuming a 6.5% rate, the monthly mortgage payment for a $143,737 home would be approximately $900. This means that the FMR of $850 would not fully cover the mortgage payment. However, it's important to note that this calculation does not account for potential down payments or the possibility of renting out additional units or properties to offset costs.
Is there enough renter demand at 27.2%?
Renter demand in ZIP 42133 is estimated at 27.2%, which might seem low to some investors. However, the median housing rent payment in the area is $604 per month, indicating that there is a segment of the population willing to pay rent at this level. Additionally, the median household income in 2023 is $56,394, suggesting that many residents have the financial capacity to afford housing costs. While 27.2% is lower than some markets, it still represents a significant portion of the population and should provide sufficient demand for rental properties.
Will vouchers keep pace with $729 market rents?
The market rent in ZIP 42133 is around $729, which is higher than the median rent of $604. Given that the FMR is set at $850, it is reasonable to assume that the Housing Choice Voucher program aims to keep pace with this figure. However, the data does not provide specific trends on voucher usage in ZIP 42133. Generally, voucher amounts are adjusted annually based on local market conditions, so it is likely they will remain close to the FMR. Investors should monitor local adjustments to ensure continued alignment with market rents.
In conclusion, while the FMR of $850 may not fully cover the mortgage payment on a $143,737 home, there are other factors to consider such as down payments and ancillary rental income. The renter demand at 27.2% is supported by the median household income and existing rental rates. Lastly, voucher amounts are expected to align with the FMR but should be monitored for any discrepancies. These insights provide a balanced view of the investment landscape in ZIP 42133, allowing for informed decision-making.
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.