Location: Butler 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $144,586 | 0.63% | D |
| 3BR | $1,190 | $206,014 | 0.58% | F |
| 4BR | $1,200 | $260,195 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP code 42261, located within the Butler County, KY HUD Metro FMR Area, has an FMR (Fair Market Rent) of $850 for fiscal year 2024. This figure represents the upper limit HUD sets for rental assistance payments in the area. Comparatively, the actual market rent in 42261 stands at $648, which is lower than the FMR, indicating that landlords receiving Section 8 vouchers can potentially benefit from higher payment standards relative to the local market.
The median home value in 42261 is $188,318. This figure suggests that the area is more affordable than some other ZIP codes within the Butler County HUD Metro FMR Area, where median home values might be higher. The 31.0% renter share in 42261 is significant, pointing towards a notable portion of residents who are likely to seek rental assistance through programs like Section 8.
Based on these figures, ZIP 42261 appears to be a value pocket within the Butler County HUD Metro FMR Area. The combination of a lower market rent compared to the FMR, along with a substantial renter share, indicates that it could be particularly attractive for landlords participating in the Section 8 program. Landlords can charge closer to the FMR without pricing out potential tenants, thereby maximizing their income while still being within reach of subsidized renters.
A key point of interest is the divergence between the relatively low median home value and the high renter share. This characteristic often signals a sweet spot for Section 8 properties, where the affordability of housing allows for a larger pool of eligible tenants, increasing the chances of occupancy and stable rental income.
In summary, ZIP 42261 presents itself as a favorable location for Section 8-related investments due to its lower market rent, significant renter population, and reasonable home values.
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.