Location: Butler County, KY | Metro: Butler County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 42273, located in Butler County, Kentucky, serves as a strategic anchor for cash flow within a Section 8 portfolio. This classification is based on the fiscal year 2024 Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD), which is $850 for the area. The market rent for the same period stands at $943, indicating a favorable spread that supports positive cash flow.
A key metric supporting this assertion is the median home value in ZIP 42273, which is $152,450. This figure suggests a moderate property value environment where the cost of acquiring rental properties remains relatively low compared to higher-value markets. Given the lower median home value, the likelihood of finding affordable properties for purchase and rental is high, making it easier to maintain a competitive edge in terms of pricing while still adhering to the FMR guidelines.
The renter share in ZIP 42273 is 3.3%, indicating a smaller proportion of residents who rent their homes. However, this does not detract from its value as a cash-flow anchor. Instead, it highlights the importance of focusing on the specific needs of the local rental market, particularly those catered to by the Section 8 program. The median income for the area is $59,745, providing insight into the financial capacity of potential tenants and aligning well with the income eligibility requirements for Section 8 assistance.
In summary, ZIP 42273 acts as a reliable cash-flow anchor within a Section 8 portfolio due to the favorable spread between HUD's FMR and the market rent, coupled with the reasonable median home value. This makes it an ideal location for landlords and small-portfolio investors looking to secure steady rental income without the volatility associated with rapidly appreciating markets.
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.