Location: Muhlenberg County, KY | Metro: Owensboro, KY MSA
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $186,203 | 0.71% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP 42330 for a Section 8 investment must follow a structured decision-making process. Begin by assessing whether the Fair Market Rent (FMR) of $850 for the fiscal year 2024 can cover the debt service on a property valued at $119,621. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. If these expenses are less than $850 per month, the answer is yes; otherwise, no.
The next step is to compare the market rent of $691, as reported by the Census American Community Survey (ACS), against the FMR. If market rent is below the FMR, landlords can potentially charge the higher FMR rate, making it a favorable situation. However, if market rent equals or exceeds the FMR, it indicates that the local rental market is already competitive at or near the FMR level. In this case, landlords might struggle to find tenants willing to pay the FMR, especially if there are other non-Section 8 options available at similar rates.
Lastly, evaluate the demand for rentals in ZIP 42330. With 29.3% of the population being renters and the number of days on the market (DOM) being listed as N/A, the key question is whether the rental rate is sufficient to attract tenants. If the market conditions indicate strong demand, with renters quickly finding homes, the answer is yes. The absence of DOM data suggests either a stable rental market or a lack of recent turnover data, which could mean that properties are rented out swiftly once they become available. This implies a steady stream of potential tenants.
If all three conditions align favorably—FMR covers debt service, market rent is below FMR, and there is a sufficient percentage of renters—the decision to invest in ZIP 42330 for a Section 8 property is affirmative. However, if any condition is not met, further investigation is required. For instance, if the debt service exceeds the FMR, reconsideration of the investment is necessary. Similarly, if the market rent is close to or above the FMR, the potential for securing Section 8 tenants diminishes, leading to a cautious "it depends" on additional factors such as vacancy rates, economic trends, and tenant preferences.
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.