Section 8 Fair Market Rent (FMR) for ZIP 42134 - 2027

Location: Simpson County, KY | Metro: Allen County, KY HUD Metro FMR Area

Investment Score for ZIP 42134

Monthly Rent (2BR)

$1,110

Median Price (2BR)

$162,435

1% Rule

0.68%

Annual Yield

8.2%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$970
2 Bedrooms	$1,110
3 Bedrooms	$1,480
4 Bedrooms	$1,560
5 Bedrooms	$1,810
6 Bedrooms	$2,027
7 Bedrooms	$2,189
8 Bedrooms	$2,298

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,110	$162,435	0.68%	D
3BR	$1,480	$246,864	0.6%	F
4BR	$1,560	$319,393	0.49%	F
5BR	$1,810	$399,895	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

19,380

Median Household Income

$59,113

Housing Units

8,326

Renter Percentage

34.7%

Occupancy Rate

92.2%

Renter Occupied

2,664

The ZIP code 42134, located in Franklin, KY, offers a stable real estate market that is particularly favorable for small-portfolio investors and landlords. The area benefits from a mix of residential properties, with a significant portion of residents being renters. This creates a solid demand for rental units, which can be leveraged for steady income streams.

The Fair Market Rent (FMR) for ZIP 42134 in fiscal year 2024 is set at $1,140, indicating the government's benchmark for affordable housing in the region.
The market rent, as measured by Zillow's ZORI (Zestimate Rent Index), stands at $1,463, suggesting that private market rates exceed the FMR, offering landlords a competitive edge.
The median home value in ZIP 42134 is $247,823, reflecting the overall affordability of the housing stock in the area.
Renters make up 34.7% of the population, underscoring a substantial demand for rental properties.
The median income for residents is $59,113, providing insight into the financial capacity of potential tenants.

Synthesizing these points, Franklin, KY presents a viable investment opportunity for those interested in the rental market. With a market rent that surpasses the FMR, landlords can expect to charge premium rates while still being accessible to the majority of renters. The median home value indicates a relatively affordable entry point for purchasing rental properties. The significant renter share ensures a steady demand for rentals, making it a reliable choice for small-portfolio investors looking for consistent returns. Additionally, the median income suggests that most residents can afford the prevailing rent levels, reducing the risk of default on rental payments.

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.