Location: Owensboro, 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 | $870 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $180,658 | 0.84% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 42350 in fiscal year 2024 is set at $920. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) to determine the maximum amount a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you would receive; it's the ceiling on what HUD will pay.
To put this into context, the average rent in ZIP 42350, according to recent Census data, is $929. This indicates that the FMR is slightly below the market rate, which means you could potentially charge a little more for non-Section 8 tenants, but the HUD subsidy would still be capped at $920 for those participating in the program.
The 10.8% share of renters in the area suggests a moderate demand for rental housing. However, given the financial support offered by the Section 8 program, this percentage can translate into a steady stream of tenants who are committed to paying their rent on time through the voucher system.
Acquiring a property in ZIP 42350 for a Section 8 rental can be done at an average price of around $135,000. This is based on typical home values in the area and can vary depending on the condition and location of the property. Given the FMR and the average rent, a Section 8 rental can be a viable investment option, especially if you're looking for stable income without the risk of vacancy.
Before deciding to participate in the Section 8 program with a rental property in ZIP 42350, you should verify that your property meets all the required standards. These include safety, health, and structural conditions, which must be up to par to qualify for the program. This ensures that you won't face unexpected costs to bring your property up to the necessary standards after signing a contract.
In summary, the FMR of $920 in ZIP 42350 provides a clear guideline for the maximum rent HUD will subsidize. With the local average rent at $929 and a 10.8% renter share, there is a reasonable demand for affordable housing. The average property cost of $135,000 makes it a realistic entry point for first-time Section 8 landlords. Ensure your property complies with all HUD standards to avoid future complications.
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.