Location: Monroe County, KY | Metro: Cumberland 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 | $700 |
| 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 |
|---|---|---|---|---|
| 2BR | $910 | $114,142 | 0.8% | D |
| 3BR | $1,260 | $177,779 | 0.71% | D |
| 4BR | $1,310 | $241,442 | 0.54% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 42167, Tompkinsville, KY, on the yield and stability axes reveals a mixed market scenario that leans towards steady cash flow rather than a high-yield/low-stability environment.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is $870, while the local market rent is $667. This suggests that there is a significant gap between what the government will pay under the Section 8 program and what the market typically charges. However, the median home value of $143,711 indicates that the investment cost is moderate, balancing the potential rental income. The difference between FMR and market rent ($870 vs $667) provides a reasonable but not exceptionally high margin for landlords participating in Section 8.
Moving to the stability axis, the rental market shows that 31.4% of the population are renters, which is a moderate figure suggesting a stable demand for rentals. The lack of available data on days on market (DOM) makes it challenging to assess the speed at which properties can be rented out, but the average household income of $48,497 supports the ability of residents to meet their rental obligations. This income level, combined with the moderate percentage of renters, indicates a market where tenants are likely to have sufficient financial stability to maintain regular rental payments.
Given these factors, ZIP 42167 is best categorized as a steady-cashflow zone. The relatively low market rent compared to the FMR ensures that landlords receive a reliable income stream that is above the typical market rate, without the volatility associated with areas where the FMR significantly exceeds market rents. Additionally, the presence of a moderate number of renters and the average income levels suggest that the market is stable enough to support consistent tenancy.
To summarize, the key figures driving this assessment are the FMR of $870 versus the market rent of $667, the median home value of $143,711, and the average household income of $48,497. These metrics point to a balanced investment opportunity with a focus on steady cash flow rather than high-risk, high-reward scenarios.
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.