Location: Simpson 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $164,805 | 0.63% | D |
| 3BR | $1,270 | $249,210 | 0.51% | F |
| 4BR | $1,630 | $319,184 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 42206, located in Auburn, KY, has a population of 5,897 residents, with 16.3% of them being renters. This indicates that the area is not heavily dominated by renters; rather, it leans towards homeownership. The median household income stands at $66,815, which provides a baseline for assessing the affordability of housing in the region.
The average market rent in this ZIP is $764, which represents approximately 14% of the median household income. This suggests that rent is relatively affordable for most households, though it still constitutes a significant portion of their earnings. When compared to the Fair Market Rent (FMR) of $1110 for FY 2024, the actual market rent is notably lower, indicating that the rental market in Auburn, KY is more competitive and possibly influenced by a lower demand for vouchers.
The scarcity of vouchers in the area can be inferred from the low percentage of renters and the fact that the market rent is well below the FMR. Landlords should anticipate tenants who are likely to be financially stable and able to afford rent without relying heavily on government assistance. However, some tenants may still qualify for Section 8 vouchers, especially those with incomes significantly below the median, but they will represent a smaller portion of the total renter pool.
In summary, ZIP 42206 is a predominantly homeowner-dominated area with a modest renter population. The typical rent consumes about 14% of the median income, making it an area where tenants generally have the financial capacity to cover their rent obligations without extensive voucher support. Landlords should prepare for a mix of tenants, including some who might benefit from the $764 market rent being lower than the $1110 FMR, but the majority will likely be self-sufficient in terms of rental payments.
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.