Location: Todd County, KY | Metro: Butler County, 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $173,684 | 0.52% | F |
| 3BR | $1,160 | $228,581 | 0.51% | F |
| 4BR | $1,260 | $315,976 | 0.4% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 42256, which includes Lewisburg, KY, stands at $58,794. Considering the market rate for rent is $671 according to the Census ACS, it becomes evident that the average household would struggle to afford housing without significant financial strain. This market rate represents a substantial portion of the median income, indicating a challenging environment for renters.
In contrast, the Fair Market Rent (FMR) set by HUD for zip code 42256 for fiscal year 2024 is $910. This higher figure suggests a discrepancy between what the market charges and what the government deems as affordable. The FMR is the basis for the Housing Choice Voucher program payments, meaning that landlords who accept vouchers could potentially receive a higher rent payment than the current market rate.
With only 16.6% of the 5,124 population being renters, competition among landlords for tenants is likely to be fierce. The affordability gap means that many potential renters may find the market rate too high and look towards subsidized housing options such as those provided through the Housing Choice Voucher program.
The takeaway for landlords is clear: accepting vouchers can provide a steady and often higher rental income compared to the market rate. While it might involve some administrative work, the strategy could help secure long-term tenants in a market where affordability is a significant issue for many households.
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.