Location: Barren County, KY | Metro: Bowling Green, KY HUD Metro FMR Area
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 | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $180,431 | 0.6% | D |
| 3BR | $1,320 | $265,268 | 0.5% | F |
| 4BR | $1,750 | $364,602 | 0.48% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 42171, Smiths Grove, KY, stands at $70,191. The market rate for rent, according to the Census ACS, is $1,008 per month. This places significant pressure on renters, as it represents approximately 17 percent of their annual income. To put this into perspective, the federal guidelines suggest that housing costs should not exceed 30 percent of a household's income, indicating a substantial affordability gap.
When comparing the market rate to the voucher payment standard of $1,040 for Fiscal Year 2024, we see that the voucher amount is slightly higher than the market rate. However, the voucher payment standard is based on the Fair Market Rent (FMR), which is an estimate of the 40th percentile of gross rents paid by existing tenants in the area. This means that while vouchers do cover the market rate, they might not fully reflect the upper range of rental costs in Smiths Grove.
With 23.8 percent of the population renting and a total population of 6,723, landlords face a competitive market. The affordability gap means that many potential renters are looking for assistance to cover their housing costs, making voucher recipients a significant portion of the rental market. Landlords who accept vouchers will have access to a steady stream of tenants whose rent is guaranteed by the government, albeit at a fixed rate.
For landlords considering their strategy, accepting vouchers can provide a reliable source of income, even if it's not as high as cash-paying tenants. However, the competition for voucher tenants is likely to be fierce due to the limited number of households that can afford the market rate without assistance. Landlords should weigh the benefits of consistent, government-backed payments against the potential for higher cash-flow from non-voucher tenants who can pay above the market rate.
In conclusion, the affordability gap in Smiths Grove underscores the importance of vouchers for many renters. Landlords should consider both voucher and cash-pay strategies to maximize occupancy and income stability, given the local economic conditions and rental market dynamics.
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.