Location: Lyon County, KY | Metro: Clarksville, TN-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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $179,518 | 0.68% | D |
| 3BR | $1,690 | $259,004 | 0.65% | D |
| 4BR | $2,040 | $425,562 | 0.48% | F |
U.S. Census Bureau data (2024)
In Cadiz, Kentucky (ZIP 42211), the real estate landscape is marked by a median home value of $142,726. This figure provides a baseline understanding of property valuation in the area. Additionally, only 0.2% of listings have seen reductions in price, indicating a strong seller's market where pricing power remains firmly in the hands of the landlords and homeowners. The median days on market (DOM) being listed as 'N/A' suggests either an extremely active market with quick sales or a lack of sufficient data points to establish a reliable trend. Both scenarios point towards a robust demand for properties in Cadiz.
The rental market also reflects favorable conditions for landlords. The Fair Market Rent (FMR) for ZIP 42211 is set at $890 for fiscal year 2024, which is notably higher than the current market rent of $777 based on Census ACS data. This discrepancy signals potential upward pressure on rental rates, allowing landlords to adjust their rents closer to the FMR without losing tenants.
For long-term investors, the setup in Cadiz implies a moderate appreciation thesis. The combination of a stable median home value and minimal price reductions indicates that the local market is not experiencing significant volatility. However, the slight increase in rental rates could contribute to gradual property value growth, driven by improved cash flow and potentially higher demand from buyers seeking investment opportunities.
Investors should be aware of the following dynamics:
The real estate environment in Cadiz, characterized by these metrics, supports a strategy focused on maintaining property values and gradually increasing rents to align with the FMR. This approach is likely to yield consistent returns for small-portfolio investors and landlords over the coming years.
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.