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 | $820 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $223,246 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 42154 is situated in a small, rural neighborhood with a total population of 629 residents. Only 10.3% of these residents are renters, indicating a primarily owner-occupied community. The median household income in this area stands at $58,036, which suggests a modest economic profile. Additionally, the median home value in ZIP 42154 is $191,609, reflecting affordable housing options in the region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area as of fiscal year 2026 is set at $900. This figure is critical for Section 8 investors as it represents the maximum amount of rent subsidy that can be paid by the Housing Choice Voucher program. However, the lack of specific market rent data for ZIP 42154 means that there is limited insight into how the FMR compares to actual local rents, potentially making it challenging to predict profitability.
Given the characteristics of ZIP 42154, it is likely to appeal more to hands-off voucher operators rather than hands-on value-add buyers. The low percentage of renters and the modest median income suggest that the demand for subsidized housing is relatively low, making it less attractive for those looking to actively manage properties and increase their value through renovations or improvements. Instead, for investors who prefer passive management and consistent cash flow, the combination of affordable home values and the Section 8 program's fixed FMR could provide a stable investment opportunity.
To summarize, ZIP 42154 offers an environment where hands-off Section 8 investors can find stability and predictability in their investments. The small number of renters and the absence of robust market rent data make it a less favorable option for active property managers seeking to enhance their portfolio through value-add strategies. The median home value and FMR provide a clear framework for understanding the financial landscape, with homes priced at $191,609 and a guaranteed rent subsidy of up to $900 per month, assuming the local market rent aligns with the metro area's FMR.
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.