Location: Logan County, 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $286,624 | 0.44% | F |
| 4BR | $1,630 | $433,454 | 0.38% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 42274, located in Logan County, KY metro, reveals a favorable cashflow scenario for voucher tenants. The HUD Fair Market Rent (FMR) for ZIP 42274 is set at $850 for fiscal year 2024. This figure is higher than the market rent of $779 as reported by the Census American Community Survey (ACS), indicating that voucher tenants will cashflow at the FMR rate.
To understand the potential returns better, consider the rent-to-price ratio derived from the median home value of $305,078. With a market rent of $779, the annual rental income would be approximately $9,348. Dividing this by the median home value gives us a rent-to-price ratio of about 0.03, or 3%. This suggests that properties in this area are relatively expensive compared to their rental yields, which might influence buy-versus-rent decisions.
Despite the higher median home values, the dynamics of the local real estate market still favor Section 8 investors. The HUD FMR provides a buffer that ensures positive cash flow even when market rents are lower. This is particularly beneficial because it means that landlords can maintain profitability without having to compete aggressively on price with other market rentals.
The strong cashflow potential in ZIP 42274 makes it an attractive investment opportunity for those interested in Section 8 housing. Given the data, the strongest angle for investors in this area is cashflow, as they can expect to generate steady income above the current market rates without the need for premium units or significant renovations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.