Location: Bowling Green, 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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $171,742 | 0.65% | D |
| 3BR | $1,340 | $263,608 | 0.51% | F |
U.S. Census Bureau data (2024)
The market in ZIP 42259, encompassing Mammoth Cave, KY, is characterized by a distinct balance between rental and ownership dynamics. The Fair Market Rent (FMR) for the area is set at $850 for the fiscal year 2024, indicating a government benchmark that reflects the economic realities of the region. In contrast, the actual market rent, as reported by the Census American Community Survey (ACS), stands at $1,048. This suggests that while the government's estimate is lower, the private market is commanding a premium, indicative of a market where demand may slightly outpace supply.
The median home value in the area is $108,531, which is notably lower than the average market rent. This discrepancy can be interpreted as a sign of limited homeownership opportunities relative to rental costs, potentially due to factors such as the local economy, job market, and population demographics. The 9.0% renter share provides insight into the long-term housing pressures. With a relatively low percentage of renters, it implies a strong preference for homeownership among residents, which could be attributed to the stability and affordability of homes in the area. However, the high market rent compared to the FMR also signals that for those who do rent, the cost is significantly higher, reflecting potential challenges in finding affordable rental options.
The absence of data on price-cut share and days on market (DOM) limits our ability to make precise inferences about the current state of the real estate market in terms of how quickly properties are selling or being discounted. Nonetheless, the overall snapshot suggests a market where rental properties are more expensive than the typical home, which might indicate that landlords are capitalizing on the limited supply of affordable homes. For landlords and small-portfolio investors, this market presents an opportunity to maintain competitive rents while ensuring the quality of their properties meets the expectations of tenants willing to pay above the FMR.
In summary, ZIP 42259 is a market where rental demand appears to be robust enough to support higher rents, despite the relatively low renter share. The median home value indicates a generally affordable market for homeowners, but the gap between FMR and market rent points towards a scenario where rental properties are commanding a premium. This dynamic creates a unique landscape where both homeownership and rental investments can thrive, depending on the investor's strategy and the specific needs of the local market.
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.