Location: Butler County, KY | Metro: Butler County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $850 for ZIP 42252 in fiscal year 2024 will sufficiently cover the mortgage on a home. According to the data, the median home value in this ZIP code is $117,857. However, the data does not provide specific mortgage costs, so it's difficult to make a direct comparison. Nonetheless, given the relatively low median home value, the FMR should generally be sufficient for covering mortgage expenses.
The investor could also doubt if there is enough renter demand at 0.0%. The data indicates that 21.5% of housing units are renter occupied, suggesting a modest but present demand for rentals. While the percentage of renters is not high, it does exist, and the small size of the community means that even a small number of rental units can represent significant demand.
Another concern might be whether vouchers will keep pace with market rents. Unfortunately, the data does not specify voucher amounts or their growth rate. However, the housing affordability index is 0, indicating that housing is generally affordable. This suggests that even if vouchers do not fully cover the market rents, they may still allow tenants to afford housing in the area.
These points highlight the challenges and opportunities in ZIP 42252. Despite the small population and limited renter demand, the low median home value and affordable housing market make it a viable investment opportunity for those willing to navigate these conditions.
Data Sources: FMR data from HUD (2027). 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.