Section 8 Fair Market Rent (FMR) for ZIP 42327 - 2027

Location: Owensboro, KY | Metro: Owensboro, KY MSA

Investment Score for ZIP 42327

Monthly Rent (2BR)

$1,000

Median Price (2BR)

$141,794

1% Rule

0.71%

Annual Yield

8.46%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$770
2 Bedrooms	$1,000
3 Bedrooms	$1,320
4 Bedrooms	$1,330
5 Bedrooms	$1,543
6 Bedrooms	$1,728
7 Bedrooms	$1,866
8 Bedrooms	$1,959

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,000	$141,794	0.71%	D
3BR	$1,320	$197,925	0.67%	D
4BR	$1,330	$235,871	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,206

Median Household Income

$66,836

Housing Units

1,779

Renter Percentage

13.1%

Occupancy Rate

86.8%

Renter Occupied

203

The ZIP code 42327, located in Calhoun, Kentucky, is a small rural area characterized by modest housing options and a predominantly owner-occupied market. This region offers opportunities for both landlords and small-portfolio investors interested in affordable properties and rental markets that reflect the local economic conditions.

Fair Market Rent (FMR): The FMR for ZIP 42327 in fiscal year 2024 is set at $910 per month for a two-bedroom apartment, indicating the government's benchmark for what is considered a reasonable rent price in the area.
Market Rent: According to the latest Census American Community Survey (ACS) data, the average market rent for ZIP 42327 is $638 per month, suggesting that the actual rents charged are below the FMR, possibly due to lower demand or supply dynamics.
Median Home Value: The median home value in the area is $178,186, which is relatively low compared to national averages, making it an attractive option for investors looking to purchase property at a lower cost.
Renter Share: Only 13.1% of the residents in ZIP 42327 are renters, pointing to a market dominated by homeowners rather than tenants. This could mean less competition for rental properties but also a smaller pool of potential renters.
Days on Market (DOM): Unfortunately, there is no available data for the average days on market for properties in this area, which might indicate limited transaction volumes or incomplete reporting.
Median Income: The median household income in ZIP 42327 is $66,836, which provides insight into the financial capacity of the local population to afford rent or purchase homes.

In summary, ZIP 42327 presents a market where rental prices are below government benchmarks, and the majority of residents own their homes. With a median home value of $178,186 and median income at $66,836, the area supports affordable housing options. However, the low renter share of 13.1% suggests that the rental market may be less active, which could impact the demand for rental properties. Investors should consider these factors when evaluating the potential returns and risks associated with investing in this ZIP code.

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.