Location: Muhlenberg County, KY | Metro: Muhlenberg County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
ZIP code 42325, located within Muhlenberg County, KY, presents a unique snapshot when compared to typical ZIP codes in the county. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $870, while the actual market rent in ZIP 42325 is slightly higher at $903. This indicates that rents in 42325 are above average but still relatively close to the FMR benchmark.
The median home value in ZIP 42325 stands at $127,128, which is notably lower than what might be expected in a larger metropolitan area. However, without comparative data on other ZIP codes in Muhlenberg County, it's difficult to definitively categorize 42325 as either a value pocket or a premium sub-market. What can be inferred is that the lower home value suggests an affordability trend that could be attractive to first-time buyers or investors looking for properties with strong appreciation potential.
A significant point of interest is the 10.7% renter share in ZIP 42325. This figure is relatively low compared to urban areas where renter shares can exceed 50%. However, within the context of Muhlenberg County, this percentage could indicate a higher concentration of rental properties relative to homeownership, potentially making it a more favorable environment for landlords and small-portfolio investors.
The combination of slightly above-average market rents and below-metro home values in ZIP 42325 does suggest a scenario that could be particularly appealing to Section 8 participants and landlords. Section 8 programs aim to provide affordable housing options for low-income families, and the dynamics in 42325 align well with this goal. Landlords can benefit from the steady demand for rental units, especially if they participate in Section 8, while maintaining property values that are lower than the metro average, thus reducing the risk of overpricing their units.
In conclusion, ZIP 42325 appears to be a mid-tier neighborhood within the Muhlenberg County, KY metro, offering a balance between affordable home values and slightly elevated rental rates. The relatively low renter share, coupled with the lower home values, may signal a sweet spot for Section 8 investments, providing both stability and opportunity for growth in the rental market.
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.