Location: Todd 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,120 | $238,749 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 42204 presents itself as a viable market for landlords looking to attract Section 8 tenants. With a population of 725, it's evident that 32.6% of residents are renters, indicating a moderate rental presence. The median household income stands at $61,452, which is a key figure when considering the financial stability of potential tenants.
The absence of specific market rent data makes it challenging to provide an exact percentage of how much of the local income is typically consumed by rent. However, we can use the Fair Market Rent (FMR) figure to make a reasonable comparison. The FMR for the metro area, set at $870 for fiscal year 2026, provides a benchmark for rental prices that align with government standards for housing affordability.
Given the median income, a rent of $870 would consume approximately 17.3% of the average monthly income before taxes. This is calculated by taking the FMR ($870) and dividing it by the average monthly income ($61,452 / 12 months = $5,121), resulting in a ratio of 17.3%. This indicates that the rental costs are relatively low compared to the median income, making it feasible for many residents to afford housing through Section 8 vouchers.
A landlord in ZIP 42204 should anticipate a tenant pool that is likely to include a significant number of individuals and families relying on Section 8 vouchers. These tenants will be seeking affordable housing options that do not exceed their budgetary constraints, particularly those set by the government's FMR guidelines. It's important for landlords to understand the administrative requirements of accepting Section 8 tenants, including the need to participate in the Housing Choice Voucher program and adhere to certain property maintenance standards.
In conclusion, while not dominated by renters, ZIP 42204 offers a substantial tenant pool that could benefit from Section 8 assistance. The FMR aligns well with the median income, suggesting that there is a good match between what tenants can afford and the available rental stock. Landlords should prepare for a mix of tenants who may have limited income but are committed to paying their rent on time through the support of government vouchers.
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.