Location: Hancock 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 | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $158,282 | 0.63% | D |
| 3BR | $1,320 | $229,750 | 0.57% | F |
| 4BR | $1,350 | $302,379 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Lewisport, KY (ZIP 42351), might raise several valid concerns regarding the feasibility of investing in the area under Section 8 guidelines. Let's address these concerns head-on using the available data.
Will Fair Market Rent (FMR) of $970 cover the mortgage on a $209,492 home?
The FMR of $970 for ZIP 42351 in fiscal year 2024 must be sufficient to cover the mortgage payments on a property valued at $209,492. According to the latest data, a typical mortgage payment for a home in this price range, assuming a 30-year fixed-rate mortgage at an average interest rate, would be around $900-$1,000 per month. Therefore, the FMR of $970 is likely to cover the mortgage, but it leaves little room for error or additional expenses such as maintenance and property taxes. The investor should carefully consider the total cost of ownership before making a decision.
Is there enough renter demand at 24.7%?
The rental vacancy rate of 24.7% in Lewisport, KY, suggests that there is a significant amount of rental housing available compared to the number of renters seeking accommodation. This high vacancy rate could indicate low renter demand, which is a critical concern for any investor. However, the data does not provide the total number of units or the historical trend of vacancies, so it's difficult to make a definitive judgment on the current state of demand. An investor would need to conduct further research into local demographics and economic factors to determine if the demand will increase over time.
Will vouchers keep pace with market rents of $827?
The market rent of $827 in ZIP 42351 is slightly below the FMR of $970, which means that the voucher amount is expected to cover the market rent. However, the question remains whether the voucher program will continue to grow or adjust to keep up with potential future increases in market rents. The data does not offer projections for future voucher amounts, so investors must monitor local and federal housing policies closely to ensure that the voucher program remains viable. If the voucher program stagnates while market rents rise, it could lead to financial difficulties for Section 8 landlords.
In summary, while the FMR of $970 can potentially cover the mortgage on a $209,492 home, the high vacancy rate of 24.7% and the uncertainty regarding future voucher amounts present significant risks. Careful consideration and further investigation are necessary before committing to an investment in Lewisport, KY, under Section 8 guidelines.
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.