Location: Monroe County, KY | Metro: Monroe 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $155,936 | 0.81% | C |
U.S. Census Bureau data (2024)
The ZIP code 42140 is located in a rural setting with a population of 1,367 residents. This area is predominantly owned by homeowners, with only 18.3% of the population being renters. The median income here stands at $46,813, which is notably lower than the national average. The median home value is also relatively low at $135,517, indicating an affordable living environment.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $930. However, the actual market rent in ZIP 42140, according to the Census ACS, is significantly lower at $538 per month. This discrepancy presents a unique opportunity for investors.
The hands-off voucher operator would find this ZIP code challenging due to the low percentage of renters and the substantial gap between the FMR and the market rent. There's a risk that voucher holders might struggle to afford rents at the FMR level, potentially leading to vacancy issues.
In contrast, a hands-on value-add buyer could capitalize on the disparity by acquiring properties at the current market rent and gradually increasing rents towards the FMR level. This strategy requires active management and improvements to make the properties more attractive and justifiable at higher rent prices.
To conclude, ZIP 42140 is better suited for the hands-on value-add buyer who can manage properties effectively and improve their value over time. For those looking for a passive investment through hands-off voucher operations, the risks and challenges outweigh the potential benefits.
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.