Location: Todd County, KY | Metro: Muhlenberg County, KY
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 | $660 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,110 | $195,798 | 0.57% | F |
| 4BR | $1,250 | $268,970 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 42345 is situated in a modest-sized neighborhood with a population of 11,440 residents. Renters make up 20.1% of the local populace, indicating a community where homeownership is prevalent but rental properties still hold significant sway. The median household income in this area stands at $62,222, reflecting a middle-class community. Median home values are set at $146,885, suggesting an affordable market for both buyers and investors.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is projected at $880. In contrast, the current market rent, as per Census ACS data, is $726. This gap between the FMR and the actual market rent presents an opportunity for Section 8 investors. The difference indicates that there is room for rents to potentially increase without exceeding the FMR threshold, which could benefit hands-on investors looking to add value through property improvements.
Given these economic parameters, ZIP 42345 might suit a hands-on value-add buyer more than a hands-off voucher operator. The lower market rent suggests that properties could be improved to command higher rents closer to the FMR, thus maximizing returns. For those willing to invest time and resources into property management and enhancement, the potential for increased cash flow is present. However, for investors preferring minimal involvement, the existing conditions offer a stable but less dynamic investment scenario.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.