Location: Todd County, KY | Metro: Clarksville, TN-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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $267,464 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42286, located in Todd County, KY, reveals several key points regarding its suitability for Section 8 landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 42286 in fiscal year 2024 is set at $970. However, the market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $738. This discrepancy means that landlords participating in the Section 8 program can expect a higher rent payment compared to the local market average, making the rent math favorable for those who qualify for the subsidy.
The second question concerns the affordability of property acquisition. With a median home value of $281,437, purchasing properties in ZIP 42286 is within reach for many investors. Unfortunately, the data on days on market (DOM) and the percentage of homes needing price cuts are not available, which limits our ability to fully assess how quickly properties sell and at what price adjustments. Nonetheless, the median home value suggests that acquiring a property is financially feasible for most investors.
The third question examines tenant demand. ZIP 42286 has a population of 2,163, with 25.3% of residents being renters. This indicates a moderate demand for rental properties. While the renter share is not exceptionally high, it still represents a significant portion of the population that could be interested in Section 8 housing, thus providing a steady pool of potential tenants.
In conclusion, ZIP 42286 presents a positive outlook for Section 8 landlords and small-portfolio investors. The higher FMR compared to the market rent makes the rent math advantageous. The median home value of $281,437 supports property acquisition, though additional metrics on DOM and price-cut shares would provide a fuller picture. With a renter share of 25.3%, there is a reasonable demand for rental units. Overall, the conditions are favorable for those willing to navigate the specifics of the Section 8 program.
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.