Location: Simpson County, KY | Metro: Logan 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 | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $135,868 | 0.82% | C |
| 3BR | $1,430 | $195,916 | 0.73% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 42202 (Adairville, KY) for Section 8 properties, follow this decision tree based on the provided data:
1) Does FMR $1,040 clear debt service on a $172,559 property?
Yes: If you can secure a mortgage with terms that allow $1,040 monthly payments to cover all costs including principal, interest, taxes, and insurance, then Adairville is financially viable for Section 8. For instance, a typical mortgage payment on a $172,559 property could be around $700-$800, leaving a substantial portion of the FMR for other expenses.
No: If your mortgage terms result in a monthly debt service exceeding $1,040, then Adairville is not a good investment for Section 8 properties under these conditions. Landlords must ensure that the FMR covers their total monthly costs.
2) Is market rent $608 above, at, or below FMR?
Above: If the market rent is higher than the FMR, then landlords might face challenges in finding tenants willing to pay the lower Section 8 rate. In Adairville, with a market rent of $608, which is below the FMR, there is less risk of this issue.
At: If market rents align closely with the FMR, landlords can expect stable occupancy rates but little room for profit beyond covering costs. Adairville's market rent is below the FMR, indicating a potential for covering costs and earning a modest profit.
Below: With a market rent of $608, which is below the FMR, landlords are likely to find that the Section 8 program pays more than what the market would bear. This makes Adairville a favorable location for Section 8 investments, ensuring steady income without significant vacancy concerns.
3) Are 28.5% renters + N/A-day DOM enough demand?
Yes: The 28.5% of the population being renters suggests a decent demand for rental properties. While the days on market (DOM) is listed as N/A, which could mean either very quick or very slow sales, the percentage of renters indicates that there is a sufficient tenant pool to support Section 8 properties.
No: If the percentage of renters is significantly lower, or if the DOM is high, indicating difficulty in renting out units quickly, then the demand might not be strong enough to justify investment. However, given the 28.5% figure, there is reasonable demand.
It Depends: If the percentage of renters is marginal and the DOM data is inconclusive, then further investigation into local rental trends and competition is warranted. Given the available data, Adairville appears to have adequate demand.
In conclusion, if the FMR clears debt service and the market rent is below the FMR, then Adairville, KY is a solid choice for Section 8 investments. The current rental market and population data suggest sufficient demand to support these properties.
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.