Section 8 Fair Market Rent (FMR) for ZIP 42160 - 2027

Location: Barren County, KY | Metro: Bowling Green, KY HUD Metro FMR Area

Investment Score for ZIP 42160

D
Monthly Rent (2BR)
$1,040
Median Price (2BR)
$139,652
1% Rule
0.74%
Annual Yield
8.94%

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$810
1 Bedroom$890
2 Bedrooms$1,040
3 Bedrooms$1,250
4 Bedrooms$1,630
5 Bedrooms$1,891
6 Bedrooms$2,118
7 Bedrooms$2,287
8 Bedrooms$2,401

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 $1,040 $139,652 0.74% D
3BR $1,250 $216,250 0.58% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,822
Median Household Income
$49,364
Housing Units
927
Renter Percentage
36.5%
Occupancy Rate
91.0%
Renter Occupied
308

The ZIP code 42160, located in Park City, KY, is primarily a renter-heavy area with significant potential for Section 8 tenants. With a population of 2,822, nearly 36.5% of residents are renters, indicating a substantial portion of the community relies on rental housing. This high percentage of renters suggests a robust demand for housing vouchers, particularly given the median household income of $49,364.

The market rent in this area is $790 per month, which represents approximately 16.1% of the median household income. This figure is notably lower than the Fair Market Rent (FMR) of $950 for FY 2024, implying that the cost of renting in ZIP 42160 is below the average benchmark set by the government. The discrepancy between the market rent and the FMR indicates that there is room for Section 8 vouchers to cover a significant portion of the rent without exceeding the maximum allowable rent set by HUD.

A landlord in ZIP 42160 can expect a tenant pool that is largely dependent on housing assistance programs. Tenants will likely have incomes at or below 50% of the area median income, making them eligible for Section 8 vouchers. These tenants will be seeking affordable housing options and will appreciate properties that offer stability and security at a price point they can manage with their voucher assistance. Landlords should prepare for a tenant base that requires financial support for housing and should ensure their properties meet the necessary standards for voucher acceptance, including passing inspections and maintaining documentation for the program.

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.