Location: Todd County, KY | Metro: Todd County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
The ZIP code 42216, located in Elkton, Kentucky, presents several considerations for landlords and small-portfolio investors. Let's address the key concerns raised by a skeptical investor.
Objection 1: Will FMR $920 (metro FY 2026) cover the mortgage on a home?
According to Zillow, there are currently 18 homes listed for sale in ZIP 42216. However, the data does not specify an average home price. Without knowing the average home price, it's difficult to calculate if the FMR of $920 can cover the mortgage on a typical home in this area. To make a decision, investors should obtain the median home value and compare it against the FMR to estimate mortgage coverage.
Objection 2: Is there enough renter demand at the occupancy rate?
The occupancy rate for ZIP 42216 is not directly provided in the available data. The rental vacancy rate is a critical metric to assess the level of demand. Unfortunately, the search results did not yield a direct figure for the rental vacancy rate in ZIP 42216. Investors should look into local real estate trends and reports to gauge the occupancy levels and determine if there is sufficient demand.
Objection 3: Will vouchers keep pace with market rents?
Housing voucher subsidies are capped based on fair market rents (FMRs) estimated annually by HUD. In ZIP 42216, the FMR for FY 2026 is set at $920. While the exact market rents are not specified, the FMR is designed to reflect the average rent for modest housing units. If the actual market rents exceed this amount, landlords may face challenges in covering the full rent. It's essential to monitor both HUD's FMR adjustments and local market rent trends to ensure that vouchers will continue to be a reliable source of income.
In conclusion, while the FMR provides a benchmark for rent, the lack of specific data regarding the average home price and occupancy rate in ZIP 42216 makes it challenging to definitively address these concerns. Investors should seek additional local data to inform their decisions.
Data Sources: FMR data from HUD (2027).
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.