Location: Ohio County, KY | Metro: Ohio County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $980 for ZIP 42328 can sufficiently cover the mortgage on a median-priced home valued at $129,008. This concern is valid given the relatively high mortgage payments that such a price would incur. However, it's important to consider that FMR reflects the 40th percentile of market rents, meaning there are higher rent values available in the market. To secure a loan, one must calculate the exact mortgage payment based on interest rates and loan terms, but the FMR provides a baseline that should be exceeded in many cases.
The investor may also doubt the viability of rental investments due to the low percentage of renters, which stands at 20.1%. This figure does suggest that the majority of residents in ZIP 42328 prefer homeownership over renting. Despite this, the demand for rentals cannot be dismissed outright. The actual number of potential renters can still represent a significant market share, especially if they are concentrated in certain areas or demographics within the ZIP code. Additionally, the rental market can be segmented into different types of properties, such as apartments and single-family homes, each with its own demand characteristics.
A final objection could be whether Housing Choice Vouchers will keep up with the market rents, currently estimated at $890. The voucher amount is indeed lower than the FMR, indicating that voucher holders might struggle to afford market-rate housing. However, the voucher program is designed to adjust annually based on changes in the local housing market. While historical data is not provided here to confirm past adjustments, the expectation is that future increases in voucher amounts will reflect rising market rents. Landlords who participate in the voucher program must ensure their rental prices align with the HUD's guidelines for the area to attract voucher tenants.
These points highlight both the challenges and opportunities present in ZIP 42328. While the data does not provide a complete picture of every variable affecting investment decisions, it offers valuable insights into the rental landscape and the considerations necessary for successful property management and investment.
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.