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 | $740 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $740 | $152,980 | 0.48% | F |
| 2BR | $970 | $154,843 | 0.63% | D |
| 3BR | $1,240 | $233,260 | 0.53% | F |
| 4BR | $1,410 | $302,415 | 0.47% | F |
| 5BR | $1,636 | $400,148 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 42141, which includes Glasgow, KY, and parts of Barren and Metcalfe Counties, reveals several key points that are essential for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, as of fiscal year 2026, is set at $920. This figure represents the maximum amount that can be charged for a rental unit under the Section 8 program. In comparison, the market rent based on Census ACS data stands at $857.
Voucher tenants in this region will generally cashflow at the HUD FMR, as it exceeds the average market rent by $63. This positive cashflow margin indicates that landlords can expect a modest but consistent profit when renting to voucher holders. However, it's important to note that this margin is relatively thin, suggesting that landlords might need to focus on maintaining efficient operations and minimizing vacancies to ensure profitability.
The median home value in the area is $214,463, which provides a basis for calculating the rent-to-price ratio. With an average market rent of $857, the annual rent would be approximately $10,284, leading to a rent-to-price ratio of roughly 4.8%. This ratio suggests that the local real estate market is moderately aligned with rental income expectations, indicating that property values are reasonable relative to the rents that can be earned.
The median days on market (DOM) for homes in the area is 71 days, and the share of homes that have experienced price cuts is just 0.2%. These figures suggest a stable housing market with minimal pressure on reducing asking prices, which could benefit both landlords and homeowners looking to sell their properties. The low DOM also implies a brisk pace of sales, which can be indicative of strong demand in the area.
The strongest angle for investors in ZIP code 42141 is cashflow. Given the HUD FMR is above the current market rent, landlords can expect to generate a steady income stream from Section 8 tenants. While appreciation may not be as robust compared to other markets, the stability of the housing market and the ability to consistently earn slightly above market rates make cashflow the primary advantage for real estate investors here.
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.