Location: Muhlenberg County, KY | Metro: Muhlenberg County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42323 in Muhlenberg County, KY, reveals several key insights for potential landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, which is higher than the current market rent of $929 as reported by the Census ACS. This suggests that landlords may struggle to charge rents that meet the FMR, leading to lower-than-projected revenue.
Acquisition affordability is moderate. The median home value in this ZIP code is $125,823, indicating that purchasing properties is relatively accessible. However, the lack of data on days on market (DOM) and the percentage of homes that have been discounted indicates an uncertain real estate market environment. Without these figures, it's difficult to assess how quickly properties can be sold and whether there is significant downward pressure on home values.
Tenant demand is present but limited. With a total population of 852 and a renter share of 32.3%, there are approximately 275 potential renters in the area. Given the size of the population, landlords should expect a smaller pool of tenants compared to larger metropolitan areas, which could impact occupancy rates and the speed at which units are filled.
Verdict: While the acquisition cost is reasonable, the mismatch between the FMR and the actual market rent suggests that landlords will need to adjust their expectations for rental income. Tenant demand exists, but it is constrained by the small population size. Landlords should carefully evaluate their investment strategy and consider factors such as property management costs and vacancy rates before entering this market. The financial viability of renting in ZIP 42323 hinges on the ability to manage costs effectively and maintain steady occupancy despite the modest rental rates.
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.